China plans to raise the foreign ownership cap in domestic banks, state media reported, citing a top regulator writing in the China Securities Journal. Li Fuan, vice-director of policy and regulation of the China Banking Regulatory Commission, said the move would attract even more international banks and gradually expand the limit on their share ownership in local banks. The upper limit is currently 20% for a single investor in one Chinese bank and combined foreign shareholding is capped at 25%. Standard & Poor's analysts said lifting the cap would be a positive move. The degree of change was not disclosed and analysts did not speculate.
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