China's banking watchdog has approved the launch of Northeast China’s first private bank, in a move to better serve the real economy and help rejuvenate the old Northeast China Industrial Base.

A statement from Rongsheng Real Estate Development Co Ltd (Rongsheng) –– a real estate developer focusing on medium-sized cities across China –– claimed that Rongsheng, together with another four Shenyang-based business partners had received the green light from the China Banking Regulatory Commission on Dec 23 to set up a private bank in Shenyang, capital city of Northeast China’s Liaoning province.

The new bank, named Liaoning Zhenxing Bank, has registered capital of 2 billion yuan ($288.1 million). A Shenyang-based subsidiary of Rongsheng is the largest shareholder of Liaoning Zhenxing Bank, which holds 30 percent of its shares; and it is followed by Shenyang Sunhope Technology Co Ltd, which has a 28 percent share in the bank.

The establishment of Liaoning Zhenxing Bank is in line with China’s strategy on the rejuvenation of the Northeast China Industrial Base. This November, the State Council released a document that requires the establishment of at least one private bank in Northeast China before June 2017, in a bid to encourage private capital into the banking sector and provide better financial services for the real economy in the northeastern region.