CHINA may allow foreign investors to hold controlling stakes in securities, fund management and insurance companies, in a statement that was released after financial and economic talks last week with Britain.

    Permitting foreigners to hold controlling stakes in domestic financial firms would be a game-changer, handing global banks and asset managers more power to make business decisions and drive the direction of their Chinese joint ventures.

    The announcement was made Thursday by Britain’s Chancellor of the Exchequer Philip Hammond and Chinese Vice Premier Ma Kai as part of the annual U.K.-China Economic and Financial Dialogue that aims to deepen economic and financial ties between the two countries.

    “China commits to gradually raise the permitted equity holding of qualified foreign financial institutions in securities and mutual fund companies,” they said, adding the China Insurance Regulatory Commission was “willing to work toward increasing foreign ownership of life insurance companies conducting business in China.”

    The statement did not provide any further details on the potential rule changes.

    China has gradually been relaxing restrictions on Sino-foreign joint ventures and has created more channels for foreigners to buy Chinese stocks, bonds and launch fund products onshore.

    Foreign investors can now hold a maximum 49 percent stake in Chinese mutual fund and securities brokerages, while they can hold up to 50 percent of life insurance firms. (SD-Agencies)