On July 20th, the Office of the Financial Stability and Development Committee of the State Council announced that, in order to implement the decision-making plan of the Central Committee of the Party and the State Council on further opening up, the following 11 financial opening-up measures for foreign companies were announced.
The 11 New Measures for Foreign Companies
Allow foreign-funded institutions rate all kinds of bonds in the inter-bank bond market and the exchange bond market when conducting credit rating business in China.
Encourage overseas financial institutions to participate in the setting up and investment of asset management subsidiaries of commercial banks.
Allow overseas asset management institutions to establish joint ventures with subsidiaries of Chinese-funded banks or insurance companies to set up asset management companies controlled by foreign parties.
Allow overseas financial institutions to invest in holding stakes in old-age pension management companies.
Support foreign capital to establish or hold stakes in currency brokerages.
The transition period from 51% to 100% of the ratio of foreign capital shares in life insurance is advanced from 2021 to 2020.
The upper share holding limits for foreign investors in domestic insurers will be allowed to exceed 25 percent.
Relax access conditions for foreign-funded insurance companies and cancel the requirement of 30 years of operation.
The scheduled removal of restrictions on the ratio of foreign capital to shares of securities companies, fund management companies and futures companies is advanced from 2021 to 2020.
Allow foreign investment institutions to obtain Type-A Main Underwriting Licenses in the interbank bond market.
Further facilitate foreign institutional investors to invest in the inter-bank bond market.