China eases restrictions on foreign investment in banking sector

MEDIA IN , Beijing, Aug. 25 (Xinhua)

 China’s Banking Supervision Commission has decided to repeal and revise some regulations on foreign investment in the banking sector in an effort to push forward financial openness. China will abolish the rules governing the investment of foreign financial institutions in domestic organs and apply the same market entry policies to Chinese and foreign investment, according to a statement issued by the China Banking and Insurance Regulatory Commission. The Committee will also remove restrictions on foreign holdings in banking and asset management companies in three other documents. The new rules state that when foreign enterprises invest in Chinese commercial banks or rural financial institutions, supervision and management of these organs should not be changed. China will create a fair, open and transparent mechanism for foreign investment in the banking sector and maintain stability and stability of the system, the statement said. The move comes as China has steadily advanced the opening up of its financial sector, with measures to reduce restrictions on foreign investors and allow more investment in equity and bond markets.