China to Open its Financial Sector Further to Foreign Investors

13 November 2017
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Key takeaways

  • On November 10, 2017, China announced that it will substantially relax foreign ownership limits in life insurance companies and other financial institutions.
  • The current 50% limit on foreign ownership in Chinese life insurance companies will be raised to 51% in three years from the current 50%, and all foreign ownership restrictions in the Chinese life insurance sector will be removed entirely in five years.
  • The announcement marks a significant development for foreign investment in the Chinese financial sector, a sensitive industry from which foreign investors have been largely sidelined for decades due to strict foreign ownership restrictions.