The China Banking Regulatory Commission (CBRC) issued regulations covering foreign financial institutions investing in Chinese financial institutions. The regulations came into effect on December 31, 2003 and cover foreign banks, securities firms, insurance companies and private equity funds that invest in Chinese commercial banks, and trust and investment companies.
Single investors are not allowed to own more than 20% of a Chinese financial institution and must meet CBRC eligibility criteria. The new regulations do not apply to the purchase of listed shares by Qualified Foreign Institutional Investors.