On November 7, the State Council issued the Opinions on Further Improving the Use of Foreign Investment (the Opinions for short below), which put forward a total of 20 opinions from four aspects: deepening opening up, intensifying investment promotion, deepening investment facilitation reform, and protecting the legitimate rights and interests of foreign investment. 

In terms of speeding up the process of opening up the financial industry, the Opinions clearly states: 

Abolish all restrictions on the business scope of foreign banks, securities companies, fund management companies and other financial institutions in China, enrich market supply and enhance market vitality; 

Reduce the quantitative access conditions for foreign investors to invest in the establishment of banking and insurance institutions and related businesses, abolish the total assets requirements for foreign banks to establish foreign-funded corporate banks and branches in China, and abolish the operating life and total assets requirements for foreign insurance brokerage companies to operate insurance brokerage businesses in China; 

Enlarge the scope of shareholders who invest in foreign banks and foreign insurance institutions, abolish the requirement that the sole or major shareholder of a Chinese-foreign equity joint bank must be a financial institution, and allow foreign insurance groups to invest in establishing insurance institutions; 

Continue to support the establishment and alteration of foreign-funded insurance companies and their branches and other administrative licensing matters in accordance with the principle of consistency between domestic and foreign investment. In 2020, the limit of 51% foreign ownership of securities companies, securities investment fund management companies, futures companies and life insurance companies shall be lifted. 

Source: jiemian.cn