China to experiment with private banks

China will launch a trial programme for private firms to set up banks, the country's banking regulator said Tuesday, with Internet giants Tencent and Alibaba reportedly among the first applicants. Most Chinese lenders are state-controlled and banks founded by private companies are extremely rare, while access to lending is a key element of the Communist authorities' control of the economy. At a key meeting in November the ruling party listed opening the banking industry to private investors as one of its major reform policies for the financial sector to introduce competition and help small enterprises obtain loans, according to AFP.