(Yicai Global) Dec. 14 -- The China Banking Regulatory Commission said yesterday that it will continue to enhance the investment and market environment in the banking industry, and encourage foreign investors to participate in China's financial market to bolster domestic banks' competitiveness and further internationalization.
With the State Council's permission, the CBRC will ease shareholding restrictions for foreign companies investing in non-private Chinese banks and asset management firms, and the same equity ratio rules will apply to domestic and foreign investors. The commission will further open up the sector to overseas backers.
Foreign banking institutions will have more liberty in choosing forms of incorporation, which will create diversity in the financial system. Their scope will expand, and regulators will make the financial market more dynamic by abolishing the 'waiting period' requirement for foreign banks seeking to offer yuan services, allowing them to engage in government bond-related businesses, relaxing restrictions on branches of foreign banks applying to enter the yuan retail banking market and supporting foreign banks' participation in the financial market.
China will adjust working capital management requirements and compliance appraisal methods for branches of overseas banks, enabling them to improve their competitiveness and leverage core strengths more effectively.
The commission will push forward banking industry deregulation for foreign businesses, and liberalize different segments in an orderly fashion. While introducing new policies and invigorating the financial market, the CBRC will improve the regulatory system and maintain stability in the financial sector, in line with its commitment to eliminating systemic risks.