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China to scrap foreign ownership limits in banks, asset managers

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China to scrap foreign ownership limits in banks, asset managers

The China Banking and Insurance Regulatory Commission started a public consultation on proposals to scrap limits on foreign shareholding in domestic banks and asset management firms, as the country seeks to further open up its financial sector.

Currently, China imposes a 20% ownership ceiling on a single foreign investor and a 25% cap on aggregate foreign shareholding in a single commercial bank or asset management firm, the regulator's spokesperson said in a June 8 statement.

In addition to eliminating the ownership limits, the commission plans to cancel a set of rules on foreign ownership of Chinese financial institutions, which was imposed in 2003. The cancellation will allow foreign-invested banks to be treated equally with Chinese banks, the spokesperson said.

The one-month consultation process will end July 8, according to a statement.