Foreign banks will no longer need local partners to open a branch in China. Since January 1, companies specializing in futures contracts can invest in China without limiting the capital holdings of their subsidiaries. Until now, banks have had to partner with a local partner and were not allowed to own more than 49% of the joint venture. The lifting of these restrictions was announced by the Chinese banking regulatory authority (CBIRC) in a statement released on Friday.
“This announcement eases tensions on the eve of a meeting with the United States for a trade war deal. It was a recurring US request, “said Mary-Françoise Renard, head of the Research Institute for China’s Economy at the University of Auvergne. Long planned, this measure should be extended to fund management companies from April 1, then to brokers from December 1, 2020.
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