China: Gov considers plan to further open up financial markets

China plans to unveil a slew of new measures to further open up its financial markets in order to improve the sector’s management and competitiveness, according to the country’s top banking and insurance regulator.

A total of 12 new rules will be released soon on the basis of profound research and evaluation, Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission told Xinhua in a joint interview, adding that China’s financial opening-up efforts have already drawn a positive market response.

The upper shareholding limits for a single Chinese-funded bank and a single foreign-funded bank in a Chinese commercial bank will be abolished simultaneously, according to Guo.

Asset requirement for foreign banks to set up foreign-funded legal person banks or branches as well as for foreign financial institutions to hold stakes in trust firms will also be removed.

The financial authorities will treat all domestic and overseas entities equally, while cooperation and competition will be carried out subject to the same rule, he said.

In addition, restrictions on Chinese shareholders in a Sino-foreign joint-venture bank will be eased. The requirement that the sole or major Chinese shareholders should be financial institutions will be abolished.