Beijing to remove foreign ownership limits on banks

Beijing

CHINA took a major step towards the long-awaited opening of its financial system, saying that it will remove foreign ownership limits on banks while allowing overseas firms to take majority stakes in local securities ventures, fund managers and insurers.

The new rules, unveiled at a government briefing on Friday, will give global financial companies unprecedented access to the world's second largest economy.

The announcement coincided with US President Donald Trump's visit to Beijing and bolstered the reform credentials of Chinese President Xi Jinping less than a month after he cemented his status as the nation's most powerful leader in decades.

While China has made big strides in opening its equity and bond markets to foreign investors, international banks and securities firms have long been frustrated by ownership caps that made them marginal players in one of the wo…