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在线翻译:
szdaily -> Markets -> 
Curbs lifted on foreign  financial firm stakes
    2017-11-13  08:53    Shenzhen Daily

CHINA took a major step toward the opening of its financial system, removing foreign ownership limits on its banks and asset management companies, and allowing overseas firms to take majority stakes in local securities ventures and insurers.

Regulators are drafting detailed rules, which will be released soon, Vice Finance Minister Zhu Guangyao said at a briefing in Beijing on Friday. Foreign firms will be allowed to own up to 51 percent in securities ventures and life insurance companies, caps that will be removed gradually over time, he said.

The move came a day after U.S. President Donald Trump reiterated calls for better access to Chinese markets in meetings with President Xi Jinping.

Xi is driving broad economic reforms by opening up China’s capital markets, internationalizing the yuan currency, and seeking technical know-how through the pursuit of massive inbound and outbound investments.

“This is a milestone in China’s progress of opening up its economy,” said Larry Hu, head of China economics at Macquarie Securities in Hong Kong. Announcing this during Trump’s visit shows the world that “China and the United States are in a business and trade cooperation rather than confrontation,” Hu said.

On Thursday, China’s Foreign Ministry foreshadowed the latest moves, with a statement saying that entry barriers to sectors such as banking, insurance, securities and funds will be “substantially” eased.

The moves would be encouraging to foreign banks, asset managers and insurers. Global banks are currently limited to owning 49 percent of local securities joint ventures.

UBS, which holds a 25 percent interest in domestic firm UBS Securities Co., said the changes Friday were an important step in further opening up China’s financial sector.

“China is a key market for UBS and, as indicated previously, we continue to work toward increasing our stake in UBS Securities Co.,” said Eugene Qian, chairman of UBS China Strategy Board.

Morgan Stanley, which earlier this year increased its stake in joint venture Morgan Stanley Huaxin Securities from 33 percent to the then upper limit of 49 percent, said the reforms would create new momentum for the finance industry in China.

China has already taken steps to open up its US$40 trillion financial sector, including allowing foreign investors greater access to its equities and debt markets through trading links with the Hong Kong market. (SD-Agencies)

 

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