The move aims to further open the country’s banking sector.
China Banking Regulatory Commission (CBRC) unveiled revised rules in an effort to standardise and clarify procedures for the operation and investment of foreign banks into China.
According to a report from OCBC, the revised rules kicked into effect last February 13 after the CBRC first issued the draft late last year.
The more notable changes in the guidelines involve clarified procedures and application materials for foreign banks who invest in onshore Chinese banks. This will then serve as the legal basis for foreign banks to acquire ownership of banks in the Mainland.
CBRC also scrapped approval procedures for foreign banks in overseas wealth management products, custody and portfolio investment funds.
Lastly, the revisions also streamlined procedures for foreign banks to set up new branches, appoint new executives and issue bonds.
“The latest move underpins China’s commitment to further open up its banking sector,” said OCBC Investment Research.
Do you know more about this story? Contact us anonymously through this link.