Business security

China to scrap business limits on foreign finance firms

The State Council, China's cabinet, put forward 20 opinions in expanding opening-up, including the removal of all business restrictions on foreign banks, brokerages and fund management firms on Thursday, as part of its effort to strictly implement its pledges to safeguard a more "fair, transparent and predictable" business environment for foreign-invested companies.

China will continue to reduce the negative list for foreign investment across the nation and regions beyond pilot free trade zones, and eliminate restrictions that are not on the negative list, in a bid to open more sectors to foreign investors, said the State Council in a statement on its website.

To accelerate the opening of the financial industry, the State Council said all restrictions should be removed on the scope of business for foreign banks, securities companies and fund management companies.

The notice also called for the removal of requirements on total assets for the establishment of foreign-funded banks.

The quantitative entry conditions will be reduced for foreign investors in banking and insurance industries. The requirements for total assets and operating history will be removed for foreign insurance brokers, enabling expansion in China, according to the opinions.