China to scrap limits on foreign holdings in banks, asset management companies

China plans to cancel rules that limit foreign investment in domestic banks and financial asset management companies in its latest effort to push forward financial opening up.

The caps on foreign holdings in such financial institutions will be removed, according to a statement from the China Banking and Insurance Regulatory Commission Friday. The restrictions were 20 percent for a single overseas institution and 25 percent for group investors.

The front gate of the China Banking and Insurance Regulatory Commission in Beijing. [Photo: Xinhua]

The commission will also abolish a 15-year investment management document that contains special items on foreign investment.

"In accordance with the principle of national treatment, we will discontinue special rules for foreign investment in Chinese financial institutions, and both Chinese and foreign investment will follow the same rules on market access and administrative licensing," the statement said.

The commission promised to build "a fair, open, and transparent system of rules" for investors buying in stakes in the banking sector.

The commission will solicit public opinion on the new policies from Friday until July 8.

As 2018 marks the 40th anniversary of reform and opening up in China, the country is steadily advancing the opening of its financial sector, with measures to reduce restrictions on foreign investors and allow more investment in equity and bond markets.