The opening up of China’s financial industry has made a new progress

The opening up of China’s financial industry has made a new progress. Recently, The China Banking Insurance Regulatory Commission released the “The Notice on Further Relaxation of Market Entry of Foreign-funded Banks”. In addition to the restrictions on the proportion of shares held, the business scope of Foreign-Funded Banks has begun to expand. Foreign-owned Banks and Sino-foreign Joint Venture Banks can carry out agency distribution, proxy cashing and underwriting government bonds, and further expand the opening up of the banking industry, and increase the ease of doing business with foreign banks. It is reported that financial liberalization will relax the conditions for setting up foreign-funded institutions, including allowing foreign banks to have sub-branches and branches in China as well as will cancel the requirement that set up two-year representative offices before the establishment of Foreign-Funded Insurance Institutions. In addition, the scope of business of Foreign-Funded Institutions is further expanded, including the complete cancellation of foreign banks applying for RMB business to meet the one-year waiting period requirements for opening, and allowing foreign bank branches to engage in the business for “agency distribution, proxy cashing and underwriting government bonds”, and the threshold that the foreign bank branches absorbs the single RMB regular retail deposit will be reduced to 500,000 Yuan, and allowing eligible overseas investors to come to China to run insurance agency business and insurance assessment business. At the same time, for Asset Management Agencies, China has also made corresponding opening policies. Yi Gang, the President of the People’s Bank of China, has announced at the Boao Forum that “the proportional upper limit of foreign ownership of fund management companies has been relaxed to 51%” and other measures. After 3 years, the stock ratio will no longer be set.
  Source: Beijing Daily              Nanfang Daily
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