The move comes as the world’s second-largest economy wants to address slow domestic growth and a trade war with the US is causing much damage.
China will remove the limit on shareholders for foreign business owners in securities, insurance and fund management companies by 2020, one year earlier than the original plan, the Commission Chinese financial stability and development (FSDC) said in a statement.This text was posted on Saturday by the Central Bank of China .
Foreign investors will also be encouraged to set up asset management, monetary brokerage and pension management companies, the report said.
Beijing has long promised to expand its economy further to foreign businesses’ participation and investment, but progress is still slow. This is also a major controversy between the country and the US and Europe.
Saturday’s Chinese announcement took place after a meeting hosted by Chinese Deputy Prime Minister Liu Hac. Accordingly, policy makers of this country have focused on solving financial risks, as well as making commitments to take new steps to support growth.
Additional measures include eliminating barriers to entry for foreign insurance companies, as the previous requirement must have been 30 years of business operation or limit foreign insurance business owners to holding only up to 25% of shares.
Foreign credit rating agencies will also be allowed to value a larger amount of bonds and debt types, the report said.
US President Donald Trump has raised a tariff war to force China to strengthen the opening of the economy and limit what he calls unfair trade activities.
Mr. Trump and Chinese President Xi Jinping agreed to revive trade negotiations, which had previously broken when the bilateral team failed to find a common point, at the meeting on the sidelines of the G20 meeting in Japan on the 29th. / 6. The top negotiators of the United States and China have recently had phone talks and promised new signals in the dialogue process.
