Chinese banks encouraged to seek private investment

China's banking regulator told its financial institutions to focus more on attracting private investment.

Banks are encouraged to gain investment from well-managed private enterprises of good repute, said the China Banking Regulatory Commission  in a guideline document.

Meanwhile, an originating bank of a rural financial institutions is now only required to hold no less than 15 percent of it, down from 20 percent, according to the CBRC.

The move gives more room for private investment.

Recently the central government has pledged to open the more heavily state-controlled and monopolized sectors to private investment.

Local banking authorities should build a good environment for private investment to participate in the banking industry, said the top regulator,adding that they should increase transparency of market entrance with no particular restriction or additional condition for private investors.

Banks are also required to increase credit support for private investment and provide innovative financial services to support the development of private enterprises, said the CBRC.