China has approved the establishment of three private banks, a landmark effort for the government to open up the state-controlled financial market to private investors.
The banks will be based in Shenzhen in Guangdong province, Wenzhou in Zhejiang province and Tianjin.
Once established, they will be subject to the same regulatory rules as their state-owned peers, said Yang Liping, director of the banking supervision department II at the China Banking Regulatory Commission.
The lenders will begin drafting corporate strategies and selecting senior managers and board directors before opening officially. They have a maximum of six months from now to prepare for the launch and can apply for a three-month extension of the preparation work before the commission's approval expires, Yang said.Â
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 China has approved the establishment of three private banks, a landmark effort for the government to open up the state-controlled financial market to private investors.
