China's banking regulator has revealed plans to launch more pilot banks in an attempt to create more government-regulated fund companies.

 

　　Shang Fulin is the chair of the China Banking Regulatory Commission.

 

　　"This act will help improve the social financing structure, increase the percentage of direct financing and adjust the high proportion of indirect financing. Besides, it can also push forward the development transformation of banks, allowing for scientific development from sole deposit and loan business to assets management. Moreover, it will also stabilize the assets market."

 

　　The Bank of Beijing and Industrial Bank are among the third batch of pilot banks which are setting up fund companies.

 

　　The Industrial and Commercial Bank of China, China Construction Bank and Bank of Communications were selected as the first batch of banks to establish fund companies in 2005.

 

　　To this point, 8 commercial bank-controlled fund management companies have been established, with assets of around 500-billion yuan.