China approves three private banks

%3CP%3E%3CFONT%20face%3DVerdana%3EChina%u2019s%20banking%20regulator%20has%20approved%20the%20establishment%20of%20three%20private%20banks%2C%20including%20Webank%20by%20Internet%20giant%20Tencent.%20It%u2019s%20part%20of%20trial%20to%20open%20up%20the%20banking%20sector%20as%20the%20government%20steps%20up%20financial%20reforms.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EA%20step%20in%20opening%20up%20the%20banking%20sector.%20One%20of%20three%20new%20banks%20is%20Webank%20in%20the%20southern%20city%20of%20Shenzhen.%20It%20will%20be%20cofounded%20by%20Internet%20giant%20Tencent%2C%20Shenzhen%20Baiyeyuan%20Investment%20Co.%20and%20the%20Shenzhen%20Liye%20Group.%20It%20will%20mainly%20serve%20individual%20customers%20and%20small%20and%20micro-businesses.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EA%20second%20new%20bank%20will%20be%20in%20the%20eastern%20city%20of%20Wenzhou%2C%20cofounded%20by%20Chint%20Group%20and%20Huafon%20Group.%20It%20will%20target%20local%20micro%20companies%2C%20individual%20businesses%2C%20and%20clients%20in%20rural%20areas.%20And%20a%20third%20bank%2C%20in%20the%20northern%20municipality%20of%20Tianjin%2C%20with%20Huabei%20Group%20and%20Maigou%20Group%20as%20co-founders%2C%20will%20mainly%20offer%20corporate%20banking%20services.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20three%20banks%20are%20expected%20to%20complete%20the%20preparatory%20work%20in%20six%20months%2C%20which%20means%20by%20next%20spring%20at%20the%20latest%20the%20first%20private%20bank%20will%20be%20officially%20inaugurated.%20The%20China%20Banking%20Regulatory%20Commission%20says%20the%20trial%20of%20private%20banks%20will%20be%20one%20of%20the%20focusses%20of%20financial%20reform%20in%20the%20future.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EExperts%20warn%20that%20banking%20involves%20risks.%20The%20profit%20margin%20of%20many%20banks%20has%20shrunk%20from%20over%2030%25%20to%20less%20than%2010%25.%20The%20risks%20of%20private%20banks%20are%20not%20to%20be%20underestimated.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20regulator%20said%20in%20March%20that%20it%20would%20allow%20the%20creation%20of%20five%20private%20banks%20on%20a%20trial%20basis.%20Each%20of%20the%20banks%20will%20be%20co-sponsored%20by%20at%20least%20two%20private%20capital%20providers.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ECBRC%20is%20working%20with%20capital%20providers%20to%20make%20plans%20for%20the%20launch%20of%20another%20two%20private%20banks.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CBR%3E%28CCTV.com%29%3CBR%3E%3C/FONT%3E%3C/P%3E