Fosun and Juneyao have kept quiet about the decision and break-up. It seems that as Fosun and Juneyao are both rather large and aggressively expanding enterprises, and may not be willing to give up their controlling position in setting up a private bank. According to private banking regulation by CBRC, a single shareholder’s stake should not exceed 30% and only one shareholder is allowed to hold the maximum amount.
It is said that Junyao has found a new partner, Shanghai Huafu Investment, to proceed with application for the first Chinese private bank in Shanghai. According to CBRC’s Shanghai office the application is still in approval process.
