China to open up payments industry to foreign competition

[File Photo: Xinhua]

Fan Yifei, deputy governor of the People's Bank of China (PBOC), told a forum on Thursday that the country will give overseas-funded payment institutions "pre-establishment national treatment." 

That means equal treatment to overseas and domestic companies even before they make investments, coupled with the negative list approach, which puts restrictions on foreign investment in certain sectors.

"The government will significantly ease market access and push forward opening in the e-payment sector," Fan told the Sixth China Payment and Clearing Forum.

He said front-end trading and settlement will be opened up first.

All payment businesses from public, private and foreign-funded institutions should seek permission to set up and be subject to supervision in the country, he said.

PBOC's governor Zhou Xiaochuan had called for more reform and opening up of the country's financial services sector earlier this month.

Zhou also said in June that opening up helped to build a strong and competitive financial sector, and that protectionist behavior limiting the participation of foreign players would lead to laziness, weakness and inefficiency that would hurt the industry's development.