The China Securities Regulatory Commission (CSRC) has announced the timeline for removing its restrictions on foreign ownership caps.
Ownership caps on futures companies will be eliminated on 1 January 2020, while caps on mutual fund companies will be scrapped on 1 April next year.
Securities companies’ ownership limits will be removed on 1 December 2020.
All these measures are aimed at opening the country’s financial services sector to more outside competition.
This July, China unveiled plans to remove restrictions on foreign ownership limits by 2020, a year ahead of schedule. However, it did not provide a timeline at that time.
The move came after China relaxed joint venture (JV) ownership caps for foreign players.
Under the new rule, foreign entities were allowed to own a 51% stake in Chinese JVs. Soon after, Swiss banking group UBS announced plans to take a majority stake in its securities JV in China.
Earlier this year, JPMorgan won a bid to acquire an additional 2% stake in its China JV, China International Fund Management (CIFM), from its JV partner Shanghai International Trust. The move offered JPMorgan a controlling stake in the JV.
Lately, Credit Suisse also signed an agreement to take a majority interest in its China securities JV, while Morgan Stanley is reportedly said to be doing the same.