China has not considered breaking caps on foreign holding in Chinese banks so far, said Tang Shuangning, vice chairman of the China Banking Regulatory Commission (CBRC).
"The ceiling has not been in place for long and it well adapts to the current situation of the Chinese banking industry, so we will keep the policy stable for a period," Tang told a press conference.
To support the opening-up of the banking sector, China has adopted measures to allow foreign participation in Chinese lenders. But it stipulates that a single foreign bank can not hold a stake of more than 20 percent in a Chinese lender while there is a 25 percent cap on all foreign holding in one Chinese lender.
Tang said the measures have helped bring in strategic investors, conduct the stock-holding reform and improve the corporate governance of Chinese banks. It has also proven to be effective in strengthening supervision over and preventing risks of Chinese lenders, he said.