Source: the China securities journal author: anonymous 06:39:07 2014-12-16

The China banking regulatory commission recently issued "about encouraging and guiding private capital involved in property rights reform of rural credit cooperatives in the notice, to further expand the rural credit cooperatives to open to private capital. "Notice" is put forward, the relaxed high quality private enterprise agency problems of rural credit cooperatives to implement policy of merger, acquisition and reorganization, merger, acquisition and reorganization institutions range from "regulatory rating five class B (including) the rural credit cooperatives" adjusting extended to five (including) the following rural credit cooperatives; Party will be the aggregate shareholding proportion adjustment to ease to 20% from 10%, under special circumstances, the stage is more than 20%.

The China banking regulatory commission, said the "notice" to further adjust the loosened the folk capital to participate in the policy for the property rights reform of rural credit cooperatives, more conducive to guide private capital into the rural financial services, thus effectively enhance the vitality of rural credit cooperatives of capital strength, management and competition ability.

Stressed that the "notice" to support private capital and other capital shall, in accordance with the same conditions to participate in the reform, joint-stock reform oriented, absorb folk capital actively, steadily and to promote the restructuring and reorganization of the rural credit cooperatives in rural commercial bank. Support has been restructured to increase endowment spread by way of rural commercial bank to further expand the participation of folk capital, increase the equity structure of the proportion of private capital, institutional shareholders proportion and quality of shareholders. To absorb priority identification service "three rural" strategy of private enterprises to participate in the reform, the key introduction of agricultural industrialization leading enterprises and farmers' cooperatives, cultivated and large new rural management main body and the steady ship to continue to increase ability of excellent private enterprises.