CBRC Released the Guiding Opinions on Mergers and Acquisitions and Reconstruction of Rural Credit Cooperatives with High Risks

The China Banking Regulatory Commission (CBRC) stipulated, in the Guiding Opinions on Mergers and Acquisitions and Reconstruction of Rural Credit Cooperatives with High Risks (Opinions), modes, scope, qualifications, requirements and procedures of mergers and acquisitions (M&As) of the rural credit cooperatives with high risks.

For the purpose of the Opinions, the modes of M&As mean the act that the purchasers merger or reconstruct the rural credit cooperatives with high risk via fully or partially accepting the existing stocks or subscribe newly-added stocks.

Under the Opinions, domestic financial institutions are eligible to merge the rural credit cooperatives by subscribing 100% of the cooperatives' stocks. Overseas financial institutions of banking sector shall hold the stocks in accordance with the Procedures for the Administration of Equity Investment in Chinese-funded Financial Institutions by Overseas Financial Institutions and etc.

(Source: China Banking Regulatory Commission)