China's announcement that it will.......>

CHINA PRESS: China's announcement that it will lift restrictions on foreign

investors' shares in Chinese banks may not have a dramatic effect in the short

term but its long-term influence will be positive, the Financial News, a

newspaper managed by the People's Bank of China, reported Wednesday, citing

analysts. The new policy means foreign investors could enhance their ownership

shares in Chinese banks and even control a Chinese bank with a majority of

share, the newspaper said. While there's chance foreign investors will become

the biggest shareholders in some small- to medium-sized Chinese banks, it will

be hard for them to control large banks, analysts said. Dong Ximiao, a

researcher at the Chongyang Institute for Financial Studies at Renming

University, said the next steps in China's opening up will be furthering  yuan

internationalization, improving the development of the offshore renminbi market,

allowing more qualified foreign investors to get financing in the domestic

market, as well as improving China's foreign exchange management system.

(Financial News)