China Eases Restrictions on Foreign Ownership of Chinese FIs
The Chinese government has announced that it will ease or remove restrictions on foreign ownership of Chinese securities and futures firms, fund managers, commercial banks, financial asset managers, life insurers and certain other financial institutions. Subject to certain transition periods, these changes will allow foreign investors to own a majority and eventually a 100% stake in many types of Chinese financial institutions. The announcement therefore represents one of the most significant steps China has taken to further open up the financial sector in the world’s 2nd largest economy. The announcement only sets out the Chinese government’s high-level policy direction, and the relevant Chinese financial regulatory authorities will soon issue specific implementing rules in accordance with Chinese laws and regulations.