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China loosens some licence requirements for foreign banks

Friday, March 17, 2017 - 11:34

[SHANGHAI] China's banking regulator scrapped licence requirements for foreign and joint-venture lenders in the country for treasury bond underwriting, custody and advisory services among other services on Friday.

The move comes as President Xi Jinping seeks to project China as a world leader in fighting protectionism and defending globalisation, repeatedly maintaining that the country will keep its door wide open.

The China Banking Regulatory Commission (CBRC) said in a notice posted on its official website that foreign and joint-venture lenders can co-operate with foreign headquarters to provide financial services to assist customers issuing bonds, managing IPOs and engaging in acquisitions and finance abroad.

The CBRC added that foreign and joint-venture lenders in China can invest in some domestic financial institutions.

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All lenders who engage in treasury bond underwriting, custody and advisory services must report to the CBRC that such business has started within 5 days.

In January, China said it would open the country to foreign investment, including easing limits on investment in banks and other financial institutions.

REUTERS

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