After a month since Chinese banking regulator CBRC disclosed the approval of three private banks, plans seems to have changed.
According to CBRC, Hua Rui Bank, planned to be set up in the free trade zone by local enterprises Fosun and JuneYao, won’t see the launch as the two firms’ partnership has split up.
As CBRC said, JuneYao and Fosun, two local private conglomerates in Shanghai, may not be willing to give up their controlling position in setting up a private bank as they are aggressively focussing on expansion.
According to private banking regulation by CBRC, a single shareholder’s stake should not exceed 30% and only one shareholder is allowed to hold the maximum amount.
It is also said that JuneYao has found a new partner, Shanghai Huafu Investment, to proceed with application for the first private bank in Shanghai. According to CBRC’s Shanghai office the application is still in approval process.
Shanghai’s HNWI population is expected to rise by more than 160% over the next decade to 3,704, said the 2013 Knight Frank wealth report. The city is only second to Beijing by HNWI population (1,415 in 2012).