‘Acid test’ of Chinese private banking hinges on regulatory regime, says Eversheds

Stephen Kitts, Asia managing partner at global law firm Eversheds, has commented on the decision to open up the Chinese banking market.

Kitts said that the decision to open up the Chinese banking market to private organisations is an interesting development that sends another signal to business that China is prepared to embrace a more expansive economic policy.

‘It remains to be seen how these arrangements will manifest themselves in practice — ultimately actions speak louder than fine words and the acid test of the statement of good intent is the regulatory regime that will be wrapped around these new institutions,’ he continued.

‘Ultimately however, these gentle steps are very much to be encouraged.’