China is expected to implement a slew of new measures in coming months in a bid to reform its financial sector, signaling a new era of opening-up.
People’s Bank of China (PBOC) Governor Yi Gang pledged to support the transformation of Shanghai into a global financial hub, adding that to achieve this status, the city should strive to become an international center for the allocation and risk management of renminbi-denominated financial assets.
Speaking at the 11th Lujiazui Forum in Shanghai on Thursday June 13, Yi presented a detailed roadmap for financial liberalization. Specifically, he announced his support of a new Shanghai-based pilot scheme that will scrap limits on foreign ownership in local securities and fund management ventures.
Take a look at some of our previous articles: China approves a new Foreign Payment option
The move comes as trade tensions with the United States are starting to take a toll on the economy. It is also consistent with announcements by the China Banking and Insurance Regulatory Commission earlier this year to relax market access to the financial sector. These included abolishing the upper shareholding limits in Chinese commercial banks, allowing foreign banks to conduct RMB transactions without prior approval and removing asset requirements for overseas banks that seek to set up branches.