FINANCIAL SECTOR ACQUISITION RULES UNVEILED

PLANNED rules governing Chinese banks’ acquisitions of overseas and domestic financial institutions, including insurers, have been issued by the regulator. According to a Bloomberg News report under the rules issued by the China Banking Regulatory Commission, banks will not be allowed to engage in deals that create monopolies, undermine effective competition or push capital adequacy ratios below 10%. Acquisitions of non-bank financial companies will still require approval from China’s cabinet, the State Council, according to the report. It added that commercial banks in China were keen on extending their footprint by sector and geography with insurance identified as a particularly attractive target.