Chinese premier urges break-up of bank monopoly

China’s premier called on the country to break up the monopoly of state-owned banks to accomplish its goal of getting more private capital into the financial sector, Reuters reported, quoting Wen Jiabao in a roundtable discussion with local businesses. Chinese banks make profits “far too easily,” Wen said. Last week, Beijing approved financial reforms to encourage private investment in banks in Wenzhou, known as a cradle of private enterprise and informal lending in Zhejiang province. Wen’s comments imply that he is pushing for aspects of the Wenzhou program to be expanded nationwide. “I think Wenzhou has had some successes, that should be replicated nationally. In fact, some can immediately be kicked off countrywide,” Wen Jiabao said. The China Securities Regulatory Commission also announced it would widen the investments foreigners can make in China through the qualified foreign institutional investor (QFII) scheme.