The country is reportedly planning to let commercial banks create venture capital units to invest in technology startups.
China’s government has given its approval to a pilot scheme that will allow commercial banks to set up venture capital arms aimed at technology startups, China Money Network reported on Tuesday.
Commercial banks in China are currently banned from investing in non-banking businesses, though some financial institutions circumvent the law by setting up vehicles abroad, inserting debt-to-equity terms into loan deals or appointing VC and private equity firms as proxy shareholders.
One example of a financial services firm relying on…
