No trial operations approved for banks in China

CHINA - China's central bank said on 2 July it has not approved any trial operations of new private banks and declared such moves illegal, contradicting a media report last week that some trials were well progressed.

"The People's Bank of China has not approved any trial operations of private banks," a central bank spokesman said. "Without the central bank's approval, all trial operations are illegal."

A newspaper said last week that "experiments" with setting up private banks in five cities -