LAW & COMPLIANCE

China announces long-awaited steps to open up financial services sector

China announces major steps to give foreign companies more control in financial services joint ventures in a news briefing on Friday.

The country will lift the ceiling on foreign ownership in joint-ventures involved in securities and fund management to 51% and the cap will be removed three years after, said Vice Minister of Finance Zhu Guangyao. 

In addition, China will lift the foreign ownership cap to 51 percent for life insurance firms after three years and remove the cap after five years, Zhu said, adding that regulators are drafting the details which will be released soon.

These latest steps announced are the biggest since 2007 when foreign banks were given green light to set up locally incorporated operations in the country.

 

Related Articles

Hong Kong’s stock exchanges finally call a halt to open-ended trading...
RMB 400 billion of additional liquidity that will be released into the market
A clearer timeline for implementation has been added
Foreign players will face stiff regulation and competition as well