China's central bank, the People's Bank of China, said the country's commercial banks should prepare to launch fund management firms and develop their fund business. In a statement on its website, the People's Bank said the State Council, China's cabinet, had agreed to the issue on principle although it did not give a time for the change. The new business would increase the banksï¿½ diversification, enhance their international competitiveness and spread the risks of indirect financing, the People's Bank said. China's banks have been keen to enter the fund business since it would open new profit opportunities and reduce their reliance on income from offering loans.
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