For the time being, foreign banks equity taking in a Chinese bank is subject to a ceiling of 25 percent, or a limit of 20 percent in the case the equity is bought by a single foreign financial institution, if these foreign banks intend to be treated same as their local Chinese partners in terms of business conduct.
By the end of 2006 when the domestic market is fully open to foreign banks for local currency business, such a proportional limit will only hold significance for taxation purpose, and bears no restrictions on the conduct of business.