Update | China pledges to open up financial markets amid threat of US trade war
Measures announced include allowing foreign investors to take controlling stakes in brokerage firms. Scale of Hong Kong-China stock connect schemes also to be expanded
China’s central bank unveiled a slew of measures to open up its financial sector to foreign investment on Wednesday, including the removal of foreign ownership caps for banks, as Beijing tries to paint itself as an open economy and a key backer of free trade and globalisation amid a looming trade war with the United States.
Yi said China would allow foreign investors to take a maximum 51 per cent equity stake in brokerage firms, futures companies and fund management firms and will remove foreign equity ceilings totally in these sectors within three years.
China will also quadruple the daily quota on the Hong Kong-Shanghai and Hong Kong-Shenzhen stock link schemes from May 1, a move that could increase integration of its onshore and offshore stock market trading, Yi said.
The promises came a day after Chinese President Xi Jinping delivered a keynote speech at the forum, known as Asia’s Davos, to pledge support for globalisation and free trade as US President Donald Trump threatens a trade war under his America First strategy.
Amid the accusations made by Trump is that China is limiting foreign firms’ access to its markets.