China Allows Banks to Invest in South Korea

China has signed an agreement with South Korea, permitting its banks to invest in South Korea’s capital market.

South Korea will be the fourth Asian country, in which China currently allows 22 of its banks to invest in. The Koreans predict the Chinese investment could total USD6 bn over the next three years. Chinese regulators have also agreed to speed up approval to allow 10 South Korean financial firms to invest in A shares listed on China's stock exchange, state media reports.

Overseas investments by the Chinese banks are topped at USD16.1 bn.