Wenzhou to pilot local privately owned banks

Trials need more policy support, however.

Wenzhou has asked the State Council to begin piloting private banks. The city is a manufacturing hub in Zhejiang province in eastern China.

Zhejiang vice governor Zhu Congjiu said the city has been striving to restructure financial institutions with more private capital. He noted that the trials need more policy support in establishing local privately owned banks, security dealers and insurance companies.

Zhu said private financial institutions in Wenzhou also want pilots of personal overseas direct investment and faster financial reform.

Wenzhou encourages state-owned bank branches to be more innovative in financing products and investment businesses, and to build new credit investigation mechanisms that serve small and micro enterprises.