Chinese authorities continue the financial sector reform
In 2017 China alleviated control over foreign shareholders of financial entities. In late February 2018 the China Banking Regulatory Commission (CBRC) released the new rules for foreign banks. According to the policies, overseas financial institutions can invest in Chinese banks and launch branches on the same basis, as domestic banks do. Furthermore, there is no more need to obtain approval for such items, as overseas wealth management products and portfolio investment funds. Foreign banks only need to report the services provided.
Since now on Chinese enterprises will have easy access to foreign lenders. The measures will boost positive effect of competition and have positive impact on Chinese economy. Moreover, the new policies are expected to strengthen ties between China and the economies with developed financial sector.
The recent changes in Chinese finance regulation have already proved to be effective and efficient. By the end of 2017 total assets of overseas institutions in Shanghai financial hub increased by 13% and the total sum composed $250 billion. That was the best growth rate in five years.
There are still many red tapes in Chinese financial sector; however, the situation is going to keep changing in the foreseeable future. For example, in the next five years restrictions for foreign institutions on investing in Chinese banks, management and insurance companies are expected to be removed.
Nevertheless, Chinese financial sector could become more attractive for foreign investors, including Russian business, if CBRC publishes clear strategic plan of actions. This step will help to synchronize the reform and investment projects for bilateral profit.
Press-release at the People’s Daily official web-site