Several of China’s leading banks, including Bank of China and China Construction Bank, are moving forward on joint ventures with foreign partners to accelerate the flow of credit to rural areas as part of the country’s efforts to reduce disparities between the cities and the countryside. BoC and Temasek, the Singapore state investment agency, are planning an ambitious scheme involving hundreds of branches.

The venture, which each will capitalise with $1.5bn, will feature a $30bn balance sheet, according to a person with direct knowledge of the matter.

Meanwhile, China Construction Bank is establishing a similar, but slightly less ambitious venture with Spain’s Santander. Temasek is being given a 49 per cent stake and management control of the operation in part because it has held on to its 4.8 per cent stake in BoC, though the Chinese bank will select the chief executive.