China, US eye banking agreement-paper

HONG KONG Nov 17 (Reuters) - Chinese and U.S. financial officials are working on a preliminary agreement to encourage mainland lenders to buy into small and medium-sized U.S. banks, according to the South China Morning Post.

The hope is to announce the deal during U.S. President Barack Obama's current visit to China, the South China Morning Post reported on Tuesday, citing mainland bankers who have been briefed about the matter.

The Memorandum of Understanding (MOU) would be part of a new strategic framework which includes a wide range of subjects from climate change to international cooperation.

Minsheng Bank (600016.SS), China's first listed non-state lender, has a 9.6 percent stake in San Francisco-based UCBH Holdings Inc UCBH.O that it was looking to increase to at least 50 percent, according to a report last month. [ID:nPEK14827] (Reporting by Twinnie Siu; Editing by Lincoln Feast)