Percentage of shares held by the largest shareholders if the largest shareholder is a foreign investor (Liang et al, 2013)
controlling ownership of the foreign
investor is negatively correlated with bank performance. Anecdotal
evidence shows that foreign banks in China have significantly declined
in recent years.23 A few possible reasons include limited business
scopes, restrictions on the scale of loans and insufficient
knowledge of business culture. The recent financial crisis might also
have contributed to the decline in foreign banks. (Liang et al, 2013)