MAIDEN SAIL: The ro-ro passenger ship Straits sets sail from Pingtan, Fujian Province, to Taipei, Taiwan, on October 9, the day the new route opened. A one-way trip takes 2.5 hours (LIN SHANCHUAN)

Bank Supervision

The China Banking Regulatory Commission (CBRC) revised its rules to step up supervision of small and medium-sized rural banks.

The draft document was published on October 9 on the website of the Legislative Affairs Office of the State Council to solicit opinions, which should be submitted before November 9.

The draft specifies conditions for establishing rural banks, stating that shareholders who are natural persons should not buy shares amounting to more than 2 percent of the rural bank's capital stock.

Shareholders who are employees of the bank should not buy shares amounting to more than 20 percent of the bank's capital stock.

Shareholders who are domestic non-financial institutions cannot buy shares exceeding 10 percent of the bank's stock, excluding mergers or restructuring of high-risk rural credit cooperatives.

Overseas banks intending to invest in the Chinese mainland's rural banks should first submit applications to the CBRC, which will adjust criteria for overseas investors based on the financial sector's risk profile.

Registration Starts

A total of 577 people applied to register companies at the newly launched Shanghai pilot free trade zone (FTZ) on October 8, the first day for registration.

Meanwhile, 1,480 people visited the zone's service lobby asking for advice and information that day.

Sun Baohua, a businessman from Wenzhou in neighboring Zhejiang Province, was the first person to apply for a registration.

Sun, who owns a micro-financing company, has rented a 20-square-meter warehouse in the zone as his office. He is expected to get his business license within four days.

"The financial institutions allowed to run businesses in the zone are all big companies," said Sun. "While my company caters for small and medium-sized enterprises with lower interest rates."

The Chinese Government officially inaugurated the 29-square-km Shanghai FTZ on September 29.

Testing of a convertible yuan and a wider opening of 18 service sectors are expected in the zone, which could usher in wider economic reforms across the country.

Growth Forecast

The World Bank cut its growth forecast for developing economies in East Asia and the Pacific region as a whole in 2013 to 7.1 percent from the previous forecast of 7.8 percent, according to a report the bank released on October 8.

The East Asia and Pacific Economic Update, released every six months, also cut its forecast for China from 8.3 percent to 7.5 percent.

"Growth in China is expected to meet the official indicative target of 7.5 percent this year. The short-term outlook is improving as industrial production data suggests further strengthening of output in the third quarter," said the report.

"China is likely to see further rebalancing of its economy by slowing credit growth and investment, although the pacing is likely to depend on overall growth," it said.

Bert Hofman, World Bank East Asia and Pacific chief economist, said the slower growth will in a way help China in the medium term as it goes through reforms to restructure the economy.