A number of Chongqing-based businessmen are planning to set up their own bank, to be called the Employment Bank, South China Morning Post said. The head of the group is Yin Mingshan, chairman of motorcycle maker Lifan Industrial Group, one of 16 large private firms proposing to set up the bank by pledging a total investment of Yn1bn. The group is also hoping for foreign investors, particularly from Hong Kong or Taiwan, to take stakes totalling up to 15 per cent of the bank.
The project has been approved by the Chongqing municipal government but the group is waiting to submit its application to the central authorities until the new banking regulator, agreed by the National People's Congress, is in operation. If the application is approved, it will be one of the first wholly privately owned banks in China. Minsheng Bank is usually regarded a private bank because it was founded largely by private shareholders, but the state also holds a stake.