China’s top bank regulator has strongly defended the handling of overseas investments in local financial institutions, saying the rules of entry ensured that foreigners would not be able make speculative windfalls from their purchases.Liu Mingkang, head of the China Banking Regulatory Commission, said he expected a decision soon over the sale of a stake in the Bank of China, one of the country’s big four state lenders, to Temasek Holdings, a Singapore state investment company.
The debate over Temasek’s application to buy a stake in BoC has become a public symbol of a backlash within sections of the Chinese government to the sale of stakes in local banks, insurers and brokerages to foreigners.
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