Bank doors open to private funds

 BEIJING, May 27 (Xinhuanet) -- China announced on Saturday it would grant private capital the same entry standards to the banking¹ industry as other capital, in an effort to shore up an economy that is continuing slowing down and to lend more to small businesses that are thirsty for funds.

 

Private companies can buy into banks through private stock placements, new share subscriptions³, equity⁴ transfers, mergers⁵ and acquisitions, according to a guideline released by the China Banking Regulatory Commission on its official website.

 

And private investment is also welcomed in trust, financial leasing and auto-financing companies, it said.

 

The guideline also lowered the minimum shareholding⁶ of the main initiator for rural banks, which are usually major State-owned commercial lenders, from 20 percent to 15 percent, to stimulate⁷ private investors⁸’ willingness to lend to rural residents and small enterprises.

 

"The banking regulatory branches at different levels cannot set up separate restrictions⁹ or additional conditions for private capital to enter banking sector¹⁰. And they are obliged to improve transparency of the banking market access constantly," the CBRC said.

 

"I’m very pleased to see the authorities encouraging and guiding the private capital to invest in the banking sector. The threshold of the financial industry certainly should be higher due to risk concern, but there should be clear and transparent¹¹ access standards that could be applied¹² to all kindsf investors," said Guo Tianyong, director of the Research Center of the Chinese Banking Industry at Central University of Finance and Economics.

 

"Otherwise, private capital would always be blocked or bounced back by an unseen 'glass door'," he said.

 

To boost lending to the private sector, China should allow private capital to play a bigger role in financial institutions, and encourage private lending companies with good operating conditions to transfer into commercial banks which could also take in deposits, said Wu Xiaoling. Wu is a former deputy central bank governor and now vice-chairman of the National People's Congress Financial and Economic Affairs Committee.

 

"The government has encouraged small lending companies to turn into rural banks," she said. "But with a minimum shareholding requirement of the main initiator, private investors lack enthusiasm for such things."

 

The government has been opening some State-controlled and monopolized¹³ sectors¹⁴ to private investment to shore up an economy that is losing steam amid rising global uncertainties¹⁵.

 

China’s securities regulator announced on Friday it will modify rules to help private companies to raise capital through sales of bonds and public shares, and encourage them to list overseas. And private investment would be encouraged in securities and futures¹⁶ brokerages, it said.

 

The State Council on Wednesday pledged more attention to "stabilizing¹⁷ economic growth" amid fears that the national economy may slow further.

 

Bao Yujun, president of All-China Private Enterprise Federation¹⁸, said uncertainty¹⁹ over external demand and slower economic growth made it necessary for the government to rely more on private sector.

 

"The official target of a 16 percent increase this year (5.76 trillion) in fixed²⁰ asset investment indicates total investment of 36 trillion yuan, but the central government could only channel about 402 billion yuan, which means more room is available for private investment," he said.

 

China recently allowed private capital to enter the railway market, which was dominated by State-controlled sectors, and the National Development and Reform Commission said last week that it is drafting rules to open up electricity, oil and natural gas sectors for the private investors.

 

Private investors can also take part in the restructuring of SOEs through cash investment, share stake acquisition, subscription² to SOE’s convertible²¹ bonds, and finance leases, according to a guideline released by the State-owned Assets Supervision²² and Administration Commission on Friday, without giving details.

 

It added that private investors can band together or establish private equity funds with SOEs to invest in strategic emerging industries or make overseas investment.

 

But analysts²³ and private companies questioned how much private enterprises would be able to benefit even if more specific rules are issued.

 

Guo Gengmao, the governor of Henan province, said earlier that local governments are reluctant to welcome private players to some public areas, because local officials would be blamed if some private companies sacrifice the public interest to make more profit.

 

"The key to lowering the threshold for private capital lies in administration in accordance with law," said Wei Yingning, former vice-chairman of China Insurance Regulatory Commission.

 

"For example, if a government branch prevented a private company from entering a certain area and the branch’s decision was not supported by law, would there be an efficient way for the company to sue successfully?"

1 banking   

n.银行业，银行学，金融业

参考例句：

• John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
• He possesses an extensive knowledge of banking.他具有广博的银行业务知识。

2 subscription   

n.预订，预订费，亲笔签名，调配法，下标（处方）

参考例句：

• We paid a subscription of 5 pounds yearly.我们按年度缴纳5英镑的订阅费。
• Subscription selling bloomed splendidly.订阅销售量激增。

3 subscriptions   

n.（报刊等的）订阅费( subscription的名词复数 )；捐款；（俱乐部的）会员费；捐助

参考例句：

• Subscriptions to these magazines can be paid in at the post office. 这些杂志的订阅费可以在邮局缴纳。 来自《简明英汉词典》
• Payment of subscriptions should be made to the club secretary. 会费应交给俱乐部秘书。 来自《简明英汉词典》

4 equity   

n.公正，公平，（无固定利息的）股票

参考例句：

• They shared the work of the house with equity.他们公平地分担家务。
• To capture his equity,Murphy must either sell or refinance.要获得资产净值，墨菲必须出售或者重新融资。

5 mergers   

n.（两个公司的）合并( merger的名词复数 )

参考例句：

• Mergers fall into three categories: horizontal, vertical, and conglomerate. 合并分为以下三种：横向合并，纵向合并和混合合并。 来自辞典例句
• Many recent mergers are concentrated within specific industries, particularly in retailing, airlines and communications. 现代许多合并企业集中进行某些特定业务，在零售业、民航和通讯业中更是如此。 来自英汉非文学 - 政府文件

6 shareholding   

n.股权

参考例句：

• Shareholding commercial banks must exercise an independent system of board of directors. 股份制商业银行必须实行独立董事制度。 来自互联网
• Asset re-structuring: to conduct shareholding reform for high quality assets. 资产重组：对优质资产进行股份制改造。 来自互联网

7 stimulate   

vt.刺激，使兴奋；激励，使…振奋

参考例句：

• Your encouragement will stimulate me to further efforts.你的鼓励会激发我进一步努力。
• Success will stimulate the people for fresh efforts.成功能鼓舞人们去作新的努力。

8 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

9 restrictions   

约束( restriction的名词复数 )； 管制； 制约因素； 带限制性的条件（或规则）

参考例句：

• I found the restrictions irksome. 我对那些限制感到很烦。
• a snaggle of restrictions 杂乱无章的种种限制

10 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

11 transparent   

adj.明显的，无疑的；透明的

参考例句：

• The water is so transparent that we can see the fishes swimming.水清澈透明，可以看到鱼儿游来游去。
• The window glass is transparent.窗玻璃是透明的。

12 applied   

adj.应用的；v.应用，适用

参考例句：

• She plans to take a course in applied linguistics.她打算学习应用语言学课程。
• This cream is best applied to the face at night.这种乳霜最好晚上擦脸用。

13 monopolized   

v.垄断( monopolize的过去式和过去分词 )；独占；专卖；专营

参考例句：

• Men traditionally monopolized jobs in the printing industry. 在传统上，男人包揽了印刷行业中的所有工作。
• The oil combine monopolized the fuel sales of the country. 这家石油联合企业垄断了这个国家的原油销售。 来自互联网

14 sectors   

n.部门( sector的名词复数 )；领域；防御地区；扇形

参考例句：

• Berlin was divided into four sectors after the war. 战后柏林分成了4 个区。 来自《简明英汉词典》
• Industry and agriculture are the two important sectors of the national economy. 工业和农业是国民经济的两个重要部门。 来自《现代汉英综合大词典》

15 uncertainties   

无把握( uncertainty的名词复数 )； 不确定； 变化不定； 无把握、不确定的事物

参考例句：

• One of the uncertainties of military duty is that you never know when you might suddenly get posted away. 任军职不稳定的因素之一是你永远不知道什么时候会突然被派往它处。
• Uncertainties affecting peace and development are on the rise. 影响和平与发展的不确定因素在增加。 来自汉英非文学 - 十六大报告

16 futures   

n.期货，期货交易

参考例句：

• He continued his operations in cotton futures.他继续进行棉花期货交易。
• Cotton futures are selling at high prices.棉花期货交易的卖价是很高的。

17 stabilizing   

n.稳定化处理[退火]v.（使）稳定， （使）稳固( stabilize的现在分词 )

参考例句：

• The disulfide bridges might then be viewed primarily as stabilizing components. 二硫桥可以被看作是初级的稳定因素。 来自辞典例句
• These stabilizing design changes are usually not desirable for steady-state operation. 这些增加稳定性的设计改变通常不太符合稳态工作的要求。 来自辞典例句

18 federation   

n.同盟，联邦，联合，联盟，联合会

参考例句：

• It is a federation of 10 regional unions.它是由十个地方工会结合成的联合会。
• Mr.Putin was inaugurated as the President of the Russian Federation.普京正式就任俄罗斯联邦总统。

19 uncertainty   

n.易变，靠不住，不确知，不确定的事物

参考例句：

• Her comments will add to the uncertainty of the situation.她的批评将会使局势更加不稳定。
• After six weeks of uncertainty,the strain was beginning to take its toll.6个星期的忐忑不安后，压力开始产生影响了。

20 fixed   

adj.固定的，不变的，准备好的；(计算机)固定的

参考例句：

• Have you two fixed on a date for the wedding yet?你们俩选定婚期了吗？
• Once the aim is fixed,we should not change it arbitrarily.目标一旦确定，我们就不应该随意改变。

21 convertible   

adj.可改变的，可交换，同意义的；n.有活动摺篷的汽车

参考例句：

• The convertible sofa means that the apartment can sleep four.有了这张折叠沙发，公寓里可以睡下4个人。
• That new white convertible is totally awesome.那辆新的白色折篷汽车简直棒极了。

22 supervision   

n.监督，管理

参考例句：

• The work was done under my supervision.这项工作是在我的监督之下完成的。
• The old man's will was executed under the personal supervision of the lawyer.老人的遗嘱是在律师的亲自监督下执行的。

23 analysts   

分析家，化验员( analyst的名词复数 )

参考例句：

• City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
• I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。