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    By Mo Jingxi | China Daily | Updated: 2019-10-22 10:26
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    Amendments further open up finance sector

    The State Council has amended some provisions in regulations that are related to the administration of foreign-funded insurance companies and banks in order to expand the opening-up of China's finance sector.

    A State Council decree published on Oct 15 said amendments to the regulations on the administration of foreign-funded insurance companies and foreign-funded banks came into effect that day.

    A new article in the regulations on the administration of foreign-funded insurance companies - article 40 - says that foreign insurance group companies are allowed to establish foreign-invested insurance companies in China.

    Another new article - 41 - stipulates that overseas financial institutions are allowed to become shareholders of foreign-funded insurance companies.

    A revised article 11 in the regulations on the administration of foreign-funded banks requires the foreign stakeholders of joint-venture banks to be financial institutions.

    The only or major stakeholder should be a commercial bank and its capital adequacy ratio should meet the requirements specified by the financial supervisory authorities, it said.

    According to a revised article 25 in the regulations on the administration of foreign-funded banks foreign banks are allowed to set up foreign-funded banks and foreign bank branches in China at the same time.

    They are also allowed to establish joint-venture banks and foreign bank branches at the same time.

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