2018年CRI Central bank governor gives details, timetable on financial opening-up

（单词翻译）

The governor of China's central bank has fleshed out measures and a timetable to further open up the financial sector¹. 

Yi Gang made the announcement at the Boao Forum² for Asia in Hainan. 

China will encourage foreign investors³ to enter its financial leasing, auto⁴ finance, consumer finance and other sectors⁵ before the end of this year. 

Central bank governor Yi Gang says the opening policies in the following six areas will be implemented⁶ in the coming months:

First, foreign equity⁷ restrictions⁸ on banks and financial asset management firms will be canceled, with equal treatment for domestic and foreign-funded institutions. Foreign banks will be allowed to set up branches and subsidiaries at the same time in the country.

Second, foreign businesses will be allowed to own up to 51 percent of shares in securities, funds, futures⁹ and life insurance joint¹⁰ ventures, and the cap will be phased out over three years. 

Third, securities joint ventures will not be required to have at least one securities firm among its domestic shareholders¹¹.

Fourth, daily quotas¹² for the stock connect schemes between the mainland and Hong Kong will be quadrupled starting from May 1. 

Fifth, qualified¹³ foreign investors will be allowed to operate as insurance agents and appraisers in the country.

Sixth, foreign-funded insurance brokers¹⁴ will have the same business scope as their Chinese counterparts do.

The central bank governor says the opening up of the financial sector should go together with the reform in exchange rate formation and the process of advancing capital account convertibility¹⁵.

Yi Gang adds China is well grounded to keep its prudent¹⁶ monetary¹⁷ policy and "fully¹⁸ prepared" for the monetary policy normalization¹⁹ in other major economies.