Following commitments earlier this month to remove foreign ownership caps, China is proceeding with a series of new policy measures aimed at opening up the nation’s financial markets including for foreign institutions to take stake or control entities in various businesses including wealth management.
According to the new measure, foreign financial institutions are encouraged to «participate in the establishment of and investment in commercial banks’ wealth management subsidiaries». Foreign players will also be allowed similar access to pension fund managers and currency brokers domestically.
There were a total of 11 new measures that were announced.
Market opening
The loosening occurs amid ongoing trade tensions with the US which take particular exception to China’s protectionist stance on various domestic markets including financial. Of the new measures involved, it also includes «allowing foreign credit rating agencies to provide ratings on exchange-listed bonds».
The new measures follow on Premier Li Keqiang’s commitment earlier this month at the World Economic Forum in Dalian to speed up greater foreign ownership in China’s financial sector.
