With a registered capital of 3 billion yuan ($432 million), Sanxiang Bank was jointly founded by equipment manufacturer Sany Group, Hunan Hansen Pharmaceutical and eight other private companies based in Hunan province.

Liang Zaizhong, 32, senior vice president of Sany Group and son of the group's founder Liang Wengen, was appointed chairman of the bank.

"Privately owned banks have to develop characteristic business strategies that are different from State-owned banks since it is impossible for them to grow into the same size as State-owned commercial lenders," he said. "The strength of Sanxiang Bank is to plow deep into industry chain finance."

Sany Group holds an 18 percent share, Hansen Pharmaceutical 15 percent, and Hunan Sany Intelligent Control Equipment has 12 percent.

The bank aims to be an innovative private lender specializing in serving the State Council's Made in China 2025 initiative, focusing on high-end manufacturing, medical treatment, renewable energy and new materials.

Relying on the resources and networks of its shareholders, the bank is looking to start with core enterprises and provide comprehensive financial services to various companies along the entire industry chain.

The China Banking Regulatory Commission stepped up the effort to approve the establishment of privately owned banks.

The regulator has given the green light to 16 private banks to date, and seven of them are now open for business.