China unveils new financial opening-up measures

China has announced a slew of new measures to further open up its financial markets, according to the office of financial stability and development committee under the State Council, the cabinet.

China will allow foreign-funded institutions to conduct credit rating business with all kinds of bonds in China's inter-bank and exchange bond market, according to a statement of the office posted on the website of the central bank on Saturday.

Overseas financial institutions will be encouraged to participate in setting up and investing in the asset management subsidiaries of commercial banks.

Meanwhile, overseas asset management agencies will be permitted to co-establish foreign-controlled asset management companies together with subsidiaries of Chinese banks or insurers, the statement said.

The new rule allows overseas financial institutions to invest in setting up or holding stakes in old-age pension management companies. It also supports foreign capital to establish or hold stakes in currency brokerages.

At the same time, the upper shareholding limits for foreign investors in domestic insurers will be allowed to exceed 25 percent.

China will facilitate foreign institutional investors in investing in the inter-bank bond market by greenlighting them in obtaining type-A underwriting licenses in the market, said the statement.

The China Securities Regulatory Commission (CSRC) later said that it would step up arrangements to implement the opening-up measures in the financial market.

The CSRC called the move an important step to deepen supply-side structural reform and expand opening-up in the financial market, which was in line with the demand of the sector and the capital market.

China announced in 2018 that it would relax the limit on foreign investment in joint-venture securities, fund management and futures companies to 51 percent, and the policy is currently in place.

Many foreign institutions have expressed intentions to increase investment in China and participate in the development of China's capital market, said an CSRC official.

Wider opening-up of the securities, fund and futures industries would encourage healthy competition, and create a good market ecology and business environment, the official said.