China to allow private banks, liberalize deposit rates

|By:, SA News Editor

China intends to allow the creation of five privately-owned banks on a trial basis. Alibaba Group plans to apply for a license in partnership with China Wanxiang Holding, while Tencent is also set to participate in the experiment.

The trial is part of China's strategy to increase the role of the markets as it looks to carry out major economic reform. In another measure, the People's Bank of China plans to liberalize deposit rates in one to two years.