Restrictions on how much foreigners can hold of Chinese banks and asset management firms have been lifted, the China Banking and Insurance Regulatory Commission (CBIRC) announced on Thursday.
Previously, foreign ownership of local banks and asset managers was capped at 20% per institution and 25% for a group of foreign investors.
A statement from the CBIRC on Thursday said that the changes are intended to promote “openness”.
As a result, “the restrictions on the proportion of foreign-invested shares of Chinese banks and financial asset management companies will be abolished”.
The move comes as Chinese asset managers are increasingly eyeing European investors with the launch of Ucits and alternative investment funds, indicating that interest is not one-way.
Insurance sector to follow
The easing of restrictions on bank and asset management companies will be followed by similar changes for the insurance sector.
Both sets of changes were announced in November 2017.
At the time, the Chinese Government stated that the ownership limits in insurance companies will rise to 51% in three years, with full foreign ownership allowed in five years.
The opening up of the circa $40trn (£31trn, €34.6trn) financial sector comes as China faces mounting criticism from US president Donald Trump over trade and accusations of currency manipulation.
Two days of trade talks ended on Thursday with no major breakthrough and another round of tariffs imposed of $16bn worth of each country’s goods, reports Reuters.