TAIPEI CITY, Taiwan, April 12, 2018 (Newswire.com) - Morgan Newfield analysts say that the People’s Bank of China has confirmed that it will increase international ownership limits to 51 percent in the financial sector over the coming months.
Earlier this week, China presented a more distinct timeline for widening access to its financial industry for international investment by the end of the year. Morgan Newfield analysts believe this move is an attempt to address the mounting criticism from the US and several other nations that China unfairly restricts market competition.
Yi Gang, governor of the People's Bank of China has pledged to allow international companies to compete with local businesses in the financial sector on a level playing field.
Morgan Newfield analysts say that although China’s pledge was mostly a repetition of past promises, for the first time the country announced that it would take a number of important steps by the end of 2018 with some of these measures to be implemented as soon as June.
The measures to be implemented include permitting international companies to invest capital in trust companies, vehicle financing and financial leasing.
The People's Bank of China also announced its intention to establish a trading link between London and China’s domestic stock markets by year end.
China’s failure to implement reforms promised in the past has long been a gripe for its trading partners and international companies. Morgan Newfield analysts say foreign companies still face harsh restrictions even in sectors that have been opened up.
In a speech seen by Morgan Newfield analysts as a move to diffuse the increasingly bitter dispute with the US over trade, Chinese President Xi Jinping stated that his country would reduce import duties on certain goods and widen access to China’s economy.
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Source: Morgan Newfield