SHANGHAI: China has approved the setting up of three private banks, including one by Internet giant Tencent, the industry regulator said on Friday, in a long-awaited economic reform aimed at bringing competition to state banking giants.

Previously, China had just two privately-owned banks, Minsheng Bank and Ping An Bank, according to state media.

The China Banking Regulatory Commission (CBRC) said it had approved private banks in the southern boomtown of Shenzhen, the northern port city of Tianjin and the eastern city of Wenzhou, which is known as the cradle of private enterprise in China.

The move followed a declaration by the government in March that it would reform China’s banking sector, which is dominated by four state-owned banks — though all of them have minority shares listed on the stock market.

Published in Dawn, July 26th, 2014