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BEIJING: China removed limits on foreign ownership of its banks and bad-debt managers, pushing ahead with a previously announced plan to open its financial system despite rising trade tensions with the US.
Overseas financial institutions will now be treated the same as local companies, the China Banking and Insurance Regulatory Commission said in a statement late Thursday, following through on a pledge announced last year.
Stakes were previously capped at 20per cent for a single foreign institution and 25per cent for a group.
The move is part of China’s longstanding effort to increase its integration with the global financial system, but it may also help President Xi Jinping counter criticism from US President Donald Trump that China has been a one-sided beneficiary of global commerce.
Xi’s government announced a number of financial opening initiatives in November, before the tit-for-tat trade conflict that saw the world’s biggest economies raise tariffs on $50 billion of each other’s exports.
Most of the Chinese opening measures are expected to take effect by the end of this year.
“China is showing they are keeping their promise and that regulators are interested in opening up, rather than closing down,” said Chen Long, a Beijing-based economist at research firm Gavekal Dragonomics.
“Given the ongoing trade dispute, from a reputation perspective, this is helpful.”
