China may liberalize banks

Beijing may soon raise the cap on foreign investment in smaller banks, the Wall Street Journal reported. Former US Commerce Secretary Don Evans told newspapers it was his "belief" that restrictions could be eased in coming months. Evans was in Beijing as head of the Financial Services Forum, which represents the CEOs of the world's biggest financial institutions. The cap for a single investor in a Chinese bank is now 20%, while maximum overall foreign investment in any single bank is 25%. Evans said caps on smaller banks are likely to be raised before any changes are made to the Big Four state banks. It has been difficult for foreign companies to work out management arrangements while controlling only 20% of shares. Evans did not offer a timetable for the changes or any new thresholds.