China plans to lift restrictions on foreign ownership in banks

Media in – Beijing, June 9, 2018 (WAM)
China plans to abolish rules restricting foreign investment in domestic banks and financial asset management companies in its latest efforts to push for financial openness.
Restrictions on foreign holdings in these financial institutions will be removed, according to a statement issued by the China Banking and Insurance Regulatory Commission on Tuesday.
Constraints were in the range of 20 percent for a single foreign institution and 25 percent for investors in a group format.
The committee will also revoke the 15-year investment management document, which contains special provisions on foreign investment.
“In accordance with the principle of national treatment, we will stop the rules on foreign investment in Chinese financial institutions, and both Chinese and foreign investment will follow the same rules as market access and administrative licensing,” the statement said.
The committee promised to build a “fair, open and transparent system of rules” for investors buying stakes in the banking sector. The committee will present the topic to the public on new policies from 8 June to 8 July