First private banks to start business next month

(ECNS) -- The first batch of private Chinese banks is expected to open by the end of this year thanks to earlier-than-expected progress in preparatory work, according to Shanghai Securities News.

The proposed Wenzhou Minshang Bank may advance its opening time to the end of next month. Qianhai Micro Bank, which has made the most robust preparation, has also submitted an application for the start of business.

On July 25, China Banking Regulatory Commission (CBRC) approved the two banks, alongside Tianjin Jincheng Bank, to complete preparations within 6 months, with an extension of 3 months if necessary.

Despite difficulties in institutional and organizational coordination, Wenzhou is making a final sprint, according to an insider.

However, public information shows Wenzhou Minshang Bank faces certain hurdles, with a state financial official revealing inconsistencies in its investment structure. Six private investors have additionally chosen to quit its ranks for various reasons, leaving about 20 percent in shares idle.

The Wenzhou Minshang Bank headquarters is still under construction, the newspaper added.

Previous reports stated the bank would mainly serve small and micro enterprises in Wenzhou, east China's Zhejiang province.

Qianhai Micro Bank, on the other hand, is all systems go.

"It will not be big problem to commence business by the end of the year," a bank insider told the newspaper.