Let 1000 Banks Bloom

Or at least 40.
Reuters: China encourages privately-owned banks, allows more foreign participation

China's banking regulator said on Friday that it will permit the establishment of more privately-owned banks and allow foreign investors to participate in the reform process to help shore up the state-dominated financial sector.

...China restricts overseas investment in a domestic lender to no more than 20 percent for a single investor, and to 25 percent for all foreign investment.

China's top banking regulator also said that more than 40 institutions have submitted applications to establish private banks. In its guidance, the CBRC said it will control the pace of setting up new private banks to help ward off potential risks.