China to grant investment licenses to lenders

China plans to grant investment banking licenses to commercial lenders as part of efforts to breed industry behemoths in the face of fiercer foreign competition, business magazine Caixin reported. A pilot scheme could involve at least two of China’s largest banks getting the green light from the China Securities Regulatory Commission (CSRC) to conduct investment banking business on the mainland, according to Caixin. The Industrial and Commercial Bank of China submitted a plan to CSRC in late 2018 seeking to set up a securities unit with registered capital of 100 billion yuan, Caixin reported.

In contrast, Chinese brokerage giant Citic Securities has registered capital of 13 billion yuan. Regulators’ desire to break the wall between commercial and investment banking was fueled by mounting competition from foreign players. Reuters