Foreign investors urged not to seek quick gains

China's banking regulator had advised foreign investors in State-lenders to hold their shares for two to three years after the banks' planned initial public offerings, the 21th Century Business Herald reported.

The China Banking Regulatory Commission (CBRC) was critical of some foreign investors in the mainland banking industry, saying in a research note that some investors were only looking for short-term gains, the report said. CBRC did not name any investors, but said bringing them on board could be a "double-edged sword" for local banks, according to the report.

The commission also advised the Bank of China (BOC) and China Construction Bank (CCB), two State lenders preparing for IPOs overseas, to team up with long-term partners rather than those interested in making quick money, it said.

The BOC and CCB are reportedly targeting international heavyweights, such as HSBC and Citibank, as strategic investors prior to the listings ¡ª believed to happen this year ¡ª but have failed to finalize any deals.

The Industrial and Commercial Bank of China and the Agricultural Bank of China, two other of China¡¯s big four State lenders eyeing stock market listings as well, have been unable to lure any foreign investors so far.

Shenzhen Daily/Agencies