Private banks approved in Beijing, Nanjing

China's banking watchdog has approved the launch of two private banks, in Beijing and eastern Jiangsu Province, to better serve the real economy and help finance small enterprises.

In a statement to the Shenzhen Stock Exchange Wednesday night, Suning Commerce Group, a major Chinese home appliance retailer, said it had received the green light from the China Banking Regulatory Commission to set up its bank in Nanjing, capital of Jiangsu.

Suning has a 30 percent stake in the bank.

Meanwhile, shareholders of Zhongguancun Bank said the bank had received regulatory approval.

Zhongguancun Bank has a registered capital of 4 billion yuan (576 million U.S. dollars) and will be established by 11 listed companies in six months. Yonyou Network Technology Co., Ltd. is the largest shareholder, with a 29.8 percent stake.

Both banks will provide financial services, mainly to individual clients and micro, small and medium-sized enterprises.

The commission approved the setting up of five private banks on a trial basis in March 2014, in a bid to further open up the banking sector to domestic and foreign capital.

Earlier this year, the banking regulator approved Chongqing-based Fumin Bank, Sichuan-based Xiwang Bank and Fujian-based Huatong Bank. Endi