China will ease restrictions on foreign ownership stakes in the financial sector a senior Chinese official has said.
China’s financial services sector will be almost entirely open to foreign players in the next five years, according to China’s deputy finance minister Zhu Guangyao.
Following criticism from the U.S. and other trading partners Zhu said at a briefing following a state visit to China by President Donald Trump that China will lift limits on foreign ownership stakes in securities, fund managers and futures companies from 49 percent to 51 percent and end restrictions after three years.
The deputy finance minister also said that China would similarly raise such limits in insurance companies and eliminate curbs after five years. In other words, foreign owners can have full ownership of such companies' after three to five years, according to a press release issued by China’s State Council.
Leadership Praised for Management
The moves appeared aimed at addressing mounting foreign complaints about China's trade surpluses and market barriers. Swiss banks Credit Suisse and UBS have both said they would like to increase their shareholding in their Chinese joint ventures.
Credit Suisse owns 33.3 percent of Credit Suisse Founder Securities (CSFS) the Beijing based joint venture established by Founder Securities and Credit Suisse in 2008.
In January this year UBS chairman Axel Weber emphasised UBS' aim to be build a longterm business in China and praised the efforts of China's leaders to open the country up, citing its controlled and steady process of financial liberalisation.
