Under the guidance of the State Council of the People’s Republic of China, the Office of Financial Stability and Development Committee announced a series of policies to expand further financial opening-up, among which the timeline of removing foreign ownership limits in foreign-invested securities companies, fund management firms, and futures companies has been brought forward one year ahead of the initial schedule. The SAB took questions from the media in this regard.
Bringing the implementation time forward is an important step taken by the SAB to implement the rulings of the CPC Central Committee and the State Council in furthering the supply-side structural reform of the securities sector and improving accessibility to high-quality financial services. Pushing for reform and development by opening up also highlights China’s determination and confidence in achieving further institutional reform and openness. The past three decades have seen tremendous achievements in China’s securities, fund management, and futures sectors.
Q What is the history behind these policies? What are the implications of these changed policies on the securities, investment, fund management, and futures sectors, and how will the policy be put into action?
A In recent years, the SAB has been pursuing a high-level opening-up of China’s capital markets by implementing the decisions and plans of the CPC Central Committee and the State Council. It was previously stated that foreign ownership restrictions for foreign-invested securities companies, fund management firms, and futures companies be eased to 51% and be entirely removed in future years. With the Administrative Measures for Foreign-Invested Securities Companies and Administrative Measures for Foreign-invested Futures Companies, the easing of such foreign ownership limits has been implemented with administrative approvals granted to several firms where foreign investors have majority ownership. In addition, many foreign institutions have since then demonstrated a greater commitment to increasing investments in China and contributing to the development of China’s capital markets. The positive effects of the opening-up policies and encouraging market feedback have created favorable conditions to accelerate the opening-up of the securities, fund management, and futures sectors.
By opening up, it is not only in the interests of the investment and securities sector to grow and prosper in a positive business environment that encourages healthy competition but also to provide increased economic development and people’s well-being with better financial services.
Moving forward, the SAB will set up working arrangements in due course to materialize the policy in practice. In the meantime, the SAB will continuously improve its regulatory capability to meet new challenges in an increasingly open environment and safeguard steady progress in the opening-up of the financial markets and services sector.
Chinese
English