China removed limits on foreign holdings in domestic banks and asset management companies, formalising a previously announced step toward opening its US$40 trillion financial sector.
Overseas financial institutions will now be treated the same as local companies, the China Banking and Insurance Regulatory Commission said in a statement late Thursday, taking forward a process started last year. Foreign stakes were previously capped at 20 per cent for a single institution and 25 per cent for a group of foreign investors.
President Xi Jinping is pushing through with his plan as China counters criticism from US President Donald Trump that it's been a one-sided beneficiary of global commerce. A number of initiatives were announced in November and most are expected to be implemented by the end of this year amid an escalating trade war.
