China pledges to allow more foreign investment in financial sector by year-end

China has recently made plans to open its financial sector to more foreign investment by the end of this year. This comes as Beijing looks for ways to avoid growing criticism from the United States and other trading partners.
Governor Yi Gang of People’s Bank of China (PBOC) said the nation will allow foreign firms to compete on an equal footing with domestic companies in the financial sector by giving foreign banks more business scope in the country.
China promises to keep these plans that were publicly announced last year. The pledges include allowing foreign firms to invest in trust companies, financial leasing, auto finance and consumer finance.
The PBOC has confirmed that it aims to launch a planned trading link between its stock markets and London by the end of 2018.
“China will raise foreign ownership limits to 51 percent in securities, fund management, futures and life insurance companies over the next few months” said the PBOC.
The current ownership cap for securities, futures and fund management firms is 49% and the cap for insurance companies is 50%. China’s president, Xi Jinping also promised to open the economy further and lower import tariffs on products like cars.
source: reuters
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