China Makes Life Easier for Foreign Banks
China’s banking regulator has wound back restrictions on the domestic operations of foreign banks in several key areas.
The China Banking Regulatory Commission has unveiled revisions to foreign bank rules that rescind the approval procedure for four items, including portfolio investment funds and overseas wealth management products.
Under the revised rules foreign banks only need to report these services to China’s regulatory agencies, instead of secure their approval in advance.
The revised rules also streamline procedure for foreign banks to establish new branches in China, appoint executive staff and issue bonds.
The revised rules came into effect on 13 February.
Last year Beijing began to send strong signals that it would further open up its banking sector to foreign players, with senior economic advisor Liu He reiterating China’s commitment to economic opening at the World Economic Forum in January.