25 September, 2018
On 23 August 2018, China Banking and Insurance Regulatory Commission (CBIRC) issued the Decision of the China Banking and Insurance Regulatory Commission on Abolishing and Revising Some Rules (Decision) (available here in Chinese) which was immediately effective on the issue date.
The Decision provides for the cancellation of three rules; this removes the limit on foreign ownership in Chinese banks and its asset management companies.
Under the old rules, the limit on foreign ownership of Chinese banks and their financial asset management companies was set at 20% for a single foreign institution and 25% for total foreign ownership.
Foreign institutions can now wholly own a bank and/or its asset management company. T
he Decision also provides for equal treatment to be given to local entities and foreign owned banks and asset management companies.
For further information, please contact:
Yang Shen, Deacons
yang.shen@deacons.com.hk
