China – CB Foreign Company Access

China – CB Foreign Company Access

On 20 July 2019, CHI CB increased access to financial industry.

  • Introduced 11 measures for opening up financial industry to foreign company access.

Measures

  • When foreign established institutions are allowed to carry out credit rating business in China, they can rate all types of bonds in the inter-bank and exchange bond market.
  • Encourage overseas financial institutions to participate in the establishment and investment of shares in commercial bank financial management subsidiaries.
  • Allow overseas asset management entities to establish JVs with Chinese banks or insurance companies to make wealth management co's controlled by foreign parties.
  • Allow overseas financial institutions to invest in pension management companies.
  • Support foreign investment to establish/participate in currency brokerage companies.
  • The removal of restrictions on foreign-invested shares of securities companies, fund management companies and futures companies will occur ahead of schedule in 2020.
  • Cancel rule that of domestic insurance companies must hold over 75% of the shares of the insurance asset management company, so foreign investors can hold over 25%.
  • Relax conditions for entry of foreign-invested insurance, cancel 30-year requirement.
  • Advance the time limit for the cancellation of foreign shares of securities companies, fund management companies and futures companies in 2021 to 2020.
  • Foreign-funded institutions are allowed to obtain the Class A lead underwriting license.
  • Facilitate investment of overseas institutional investors in inter-bank bond market.