Last week, China announced plans to ease foreign investment restrictions in its financial markets.
- Chinese Vice Finance Minister Zhu Guangyao told a press conference on Friday that foreign businesses will be allowed to own up to 51% of shares in joint ventures in securities, funds or futures. The cap will be phased out over three years.
- Restrictions on investment in Chinese banks and financial asset management companies will also be removed. After three years, foreign investors will be allowed to own up to 51% of shares in joint ventures in life insurance, with the cap removed in five years.
The news was announced during a meeting of Chinese and U.S. state leaders, but the Chinese Finance Ministry has confirmed it applies to all countries.
The Asia Programme Team at the City of London welcomes this news, and hopes it will lead to stronger ties in Financial and Professional Services between the UK and China. This represents an opportunity not only for firms in market, but also those currently considering making an entry.
The China financial weekly report is part of a regular, free email information service provided by the City of London to subscribers. This service provides information, and electronic links to information, relating to the Chinese economy and financial services. This service provides summaries of information in the public domain.
For more information about the City and the City of London Corporation, please go to http://www.cityoflondon.gov.uk/china.