(Yicai Global) July 2 -- The Chinese government has eased restrictions on joint venture shareholdings for foreign companies investing in corn and wheat, as well as oil and gas, at the country's free trade zones.

Overseas firms breeding new wheat and corn strains will be able to hold 66 percent of JVs, up from 49 percent at present, authorities said in an annual update to the new negative list for foreign investment at FTZs. The government will also remove restrictions on firms engaged in exploration and exploitation of petroleum and natural gas, state-backed Xinhua News Agency reported.

The new list slashes the number of measures levied against foreign firms working in FTZ to 45 from 95 previously, with the new rules set to come in on at the end of this month.

China set up its first FTZ in Shanghai in 2013 as a pilot-level area for the roll out of trade and investment reforms. Many pilot schemes start in FTZs before being introduced nationwide. The country is home to 12 such areas as of April this year. The government has continued to improve the level of opening up in FTZs and cut 27 measures in last year's negative list update.

Authorities have also set transitional periods for the opening up of other sectors in the future. The country will ease restrictions on the shareholding ratio of foreign parties in the securities, futures and insurances sector by 2021 from 51 percent at present, while foreign investors will be able to hold stakes in excess of 50 percent in carmaking JVs in 2020.

The new list not only cuts measures but also promotes the opening up of some important fields, said Hao Hongmei, Deputy Director of the Institute of Foreign Investment, adding that reforms in agriculture, mining, culture and value-added telecommunications will not be rolled out nationwide at present.

Editor: William Clegg