In what is being billed as a push to reduce risk in the financial sector and encourage new entrants into the marketplace, the new rules could allow existing foreign companies in China – Like HSBC and Standard Chartered – to set up separate China-based digital banks.
According to Reuters, a dozen groups on interested parties, including foreign companies, are in talks with Chinese regulators over the potential rules.
Banks that wish to create digital subsidiaries will be able to own majority stakes in them, easing restrictions on foreign access to China’s financial markets.
