HAIKOU, June 6./TASS/. Changshu Bank Rural will set up the first rural bank in China for managing investment on the Hainan Island within the framework of a free trade zone in this southern province. According to the Shanghai information portal Shine, the central regulator has already given its permission for the bank opening.
The new bank, dubbed XingFu Commercial Bank, will be located in Haikou — the administrative center of the province. The creation of a new financial institution, as its representative noted, will help Changshu Rural Bank directly manage the assets of those rural banks in which it has a stake.
Earlier, China's central regulator passed a resolution calling for financial institutions across the country to open rural banks to manage investments or to use those banks where they already have a share. The plans in this direction were announced, in particular, by the Bank of Beijing, Shanghai Pudong Development Bank and Fullerton Community Bank.
The authorized capital of the new rural investment bank will stand at 1 billion -1.5 billion yuan ($145 - $217 mln). Changshu Rural Bank will own at least 90% of the shares.