On July 20, 2019 the Chinese central government1 issued a policy statement aimed at accelerating and further expanding the opening up of China’s financial sector to foreign investors.
Under the new policies, limits on foreign shareholdings in securities, fund management, futures and life insurance companies in China will be lifted earlier than previously anticipated, restrictions on foreign investment in insurance companies and insurance asset management companies will be further relaxed, and foreign financial service providers and investors will have wider and more streamlined access to China’s bond market.
The new policies are embodied in the following specific measures:
(a) Foreign credit rating agencies will be permitted to provide credit ratings services in respect of all types of bonds traded on the interbank bond market and stock exchanges.
(b) Foreign financial institutions will be encouraged to invest into Chinese commercial banks’ wealth management subsidiaries.
(c) Foreign asset management institutions will be permitted to establish joint ventures for the purpose of wealth management with subsidiaries of Chinese insurance companies or commercial banks, with the foreign institutions having a controlling interest.
(d) Foreign financial institutions will be permitted to establish or invest in pension management companies in China.
(e) Foreign investors will be supported in establishing wholly or partly owned currency brokerage companies in China.