(Yicai Global) Oct. 19 -- China will promote the opening up of the banking sector and conduct reforms of foreign banks' shareholding ratio and establishment of institutions, China Banking Regulatory Commission Chairman Guo Shuqing said today at the 19th Communist Party of China (CPC) National Congress.

Foreign banks have steadily grown their presence in China over the past five years, but their share of the Chinese banking market has declined, which is not conducive to the promotion of competition in the sector or structural optimization, Guo said.

The equity of the banking industry has diversified in recent years, and the transformation and opening up of the sector will guide private capital to the industry in an orderly manner, said Guo.

The next step is to deepen reform in the banking sector and improve corporate governance structure, Guo said. A key issue is that some bank shareholders did not play their role well, and they concealed their holdings or held equity on behalf of others, he said. China should focus on board member construction and the selection of independent directors, said Guo.