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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (2262)	12/26/2003 6:18:10 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China may scrap blanket ban on banks trading stock New rules will allow some leeway for banks: report CHINA'S Parliament is debating a small but significant amendment to laws that could lift an eight-year-old ban on banks trading stock and setting up investment trusts, state newspapers said yesterday. An amended Commercial Law tabled to the National People's Congress, or Parliament, proposes to delete a provision stating commercial lenders are prohibited from domestic trust investment and stock businesses, the China Securities Journal said. Instead, it would carry a new provision saying banks must not do such business 'in violation of state regulations', the daily reported, allowing lenders to trade stock in future should new regulations permit. 'The amendments indicate the state would give some leeway for banks to conduct such businesses, although it will still impose restrictions on businesses in such fields.' China's Commercial Law, implemented in 1995, was partly the result of a sweeping crackdown on excessive stock and trust speculation in the mid-1990s, after which the government segregated the banking, brokering and trust sectors. Beijing also set up an independent interbank bond market in 1997 to prevent bank money flowing into stocks through bond markets on the Shanghai and Shenzhen stock exchanges. But market conditions have changed and efforts to reform a debt-laden financial system have prompted a call from industry players for Beijing to carve new business channels for banks hoarding US$1.3 trillion in personal savings. Beijing is also looking for ways to create fresh sources of funding for its cash-starved brokerages and investment trusts. - Reuters business-times.asia1.com.sg