Entrepreneurs in Hunan are calling for the establishment of a provincial bank to fund the local economy as the province tries to play a leading role in the development of Central China.
"Financial resources in Hunan are relatively limited and we expect a consolidation in this area," said Guo Yunbin, chairman of Xinjiang Huitong (Group) Co Ltd, an infrastructure construction company based in the Xinjiang Uygur Autonomous Region.
"Several private entrepreneurs, including me, are interested in investing in the new bank," Guo said, without elaborating.
Guo, a native of Hunan, made the remarks at the First Conference of Hunan Entrepreneurs held in the province's capital Changsha yesterday. The conference, organized and sponsored by Hunan provincial government, aims to promote business cooperation among entrepreneurs of Hunan origin. Over 2,000 businesspeople from across the country attended the two-day meeting.
Nearly 200 project deals were inked during the conference, with a total contract value of over 40 billion yuan (US$5.33 billion).
Earlier reports said five local commercial banks and a credit cooperative in Hunan Province would merge and restructure into a provincial bank, which may be named Xiaoxiang Bank.
China's banking regulator encourages consolidation of city commercial banks within respective regions to improve their capital strength and competitiveness and to provide local businesses easier access to financial services.
The country's first regional bank, Huishang Bank was formed at the end of 2005 after a merger of six city commercial banks and seven credit cooperatives in East China's Anhui Province.
