Juneyao plans private bank in China
Beijing is encouraging competition in a sector dominated by state-owned players
A consortium of investors led by Juneyao Group is spearheading a move to set up a privately owned bank on the mainland, in line with the leadership's attempt to introduce new competitors in the sector dominated by state-owned players.
Juneyao, which runs airlines and dairy businesses, along with other privately owned companies including Fosun Group and Shanda Interactive Entertainment, plans to establish a bank with an initial investment of 5 billion yuan (HK$6.3 billion), according to sources with knowledge of the plan.
It is still in the application process and it is unclear when the investors will receive the go-ahead from regulators.
None of the companies would elaborate on the bank plan.
Juneyao, founded by Zhejiang businessman Wang Junyao, is one of the most prominent privately owned business empires on the mainland.
After the death of Wang Junyao in November 2004, his brother Wang Junjin became the chairman and has been trying to diversify into finance.
Beijing has made it clear that it will encourage private investments into the banking sector. The buzz in the industry is that a bank wholly owned by private investors will debut this year.