China loosens some licence requirements for foreign banks
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Shanghai: China’s banking regulator scrapped licence requirements for foreign and joint-venture lenders in the country for treasury bond underwriting, custody and advisory services among other services on Friday.
The move comes as President Xi Jinping seeks to project China as a world leader in fighting protectionism and defending globalisation, repeatedly maintaining that the country will keep its door wide open.
The China Banking Regulatory Commission (CBRC) said in a notice posted on its official website that foreign and joint-venture lenders can co-operate with foreign headquarters to provide financial services to assist customers issuing bonds, managing IPOs and engaging in acquisitions and finance abroad.
The CBRC added that foreign and joint-venture lenders in China can invest in some domestic financial institutions.
All lenders who engage in treasury bond underwriting, custody and advisory services must report to the CBRC that such business has started within 5 days.
In January, China said it would open the country to foreign investment, including easing limits on investment in banks and other financial institutions.