China loosens grip on foreign-funded banks

China takes another step towards opening its highly regulated banking system to the outside world.

Its National Development and Reform Commission, the top economic planner, said foreign-funded banks are allowed to borrow as much as US$24 billion of medium and long-term external debt this year.

By approving foreign banks' issuance of external debts, China aims to open up its banking sector to the outside world and let foreign banks play an active role in attracting overseas investment to help Chinese enterprises to go global.