PBC Okays Iranians Buying Stake in Chinese Banks

EghtesadOnline: The People’s Bank of China, the central bank of the East Asian nation, has reportedly given the green light to Iranian private sector investors interested in purchasing the shares of Chinese banks.

News ID: ۷۴۴۷۱۰

27 January 2018

Iranians’ offer to buy shares in Chinese banks was first floated years ago, at the center of which was Asadollah Asgaroladi, a veteran tradesman and chairman of Iran-China Chamber of Commerce.

The Iranian side made efforts to gradually prepare the ground to enter the Chinese financial sector as shareholders, but needed to wait for the legal due process and for the People’s Bank of China to issue the permit, Mehr News website reported.

According to Asgaroladi, “the central bank of China has now issued the required permits for Iran to purchase the shares of Chinese banks”.

“This would mean that the ball is now in the court of the Central Bank of Iran and its governor Valiollah Seif who will have to make the next move,” Financial Tribune quoted him as saying.

According to the prominent private sector figure, Iran’s private sector has completed the groundwork and announced its readiness to purchase the shares of Chinese banks.

Asgaroladi has not named any of the prospective Chinese banks eyed by Iranian investors and official reports have also not confirmed the likely lenders.

However, Mehr News quoted two unnamed sources with the central bank and the private sector on the issue.

The anonymous banking official said CBI is yet to complete its review of the matter, but “it is possible that the permit will be issued”.

The other unnamed source with the private sector has said the volume to be invested by Iran’s private sector in Chinese banks will be lower than $100 million.