Mediator: Joanna Law, staff writer of China Law & Practice [CLP]
Participants Liu Zhigang, partner at King & Wood [LZ]
Alex Zhang, partner at Jones Day [AZ]
Kevin Zhou, partner at GFE Law Office [KZ]
David Zou, senior partner at Boss & Young [DZ]
CLP: What are the main reasons behind the government’s move to issue these Guidelines?
DZ: The regulation is issued mainly in reaction to the recent development of Chinese banks, which have become financial controlling groups through equity investment into other financial institutions as well as business diversification to include insurance, securities and funds. This development significantly raised the total risks of a banking group and the risks and impact on the banking group brought by the banking group’s affiliates.
KZ: The Chinese government has realized that the opening-up of the banking industry not only has brought positive impacts on China’s financial system but also has created some...
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