Fed OKs China-controlled banks as holding companies

WASHINGTON Wed May 9, 2012 2:44pm EDT

WASHINGTON May 9 (Reuters) - The Federal Reserve on Wednesday announced a series of approvals for some of China's biggest government-controlled banks to set up bank holding companies and expand existing operations in the United States.

The U.S. central bank said Industrial and Commercial Bank of China Ltd, the biggest bank in China and 70.7 percent owned by the government of China, could become a bank holding company.

The Fed also approved an application by China Investment Corp, which is an investment vehicle through which the Chinese government invests its foreign exchange reserves, to become a holding company.

It also said Central Huijin Investment Ltd, which is controlled by CIC, was approved to become a holding company.

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