BOAO, China — China’s central financial institution governor pledged to expand overseas access to the nation’s banking, securities and insurance coverage sectors this yr and open a buying and selling link between the Shanghai and London inventory exchanges.
Yi Gang, governor of the People’s Bank of China, stated Wednesday at a discussion board that by the top of June, the federal government will take away overseas possession caps on Chinese banks and permit overseas securities and life insurance coverage companies to maintain majority stakes of their Chinese counterparts. Yi stated overseas possession caps on Chinese securities and life insurers — that are presently being raised to 51% from 49% — shall be completely abolished in three years.
By the top of this yr, Yi stated China will launch a buying and selling link connecting the Shanghai inventory market to London’s. Talks to do this, he stated, are making “good progress.”
In addition, Yi launched a number of new measures. He stated that by the top of June, China will expand the permitted enterprise scope for overseas insurance coverage brokers and will quadruple the every day quota allowed for overseas buyers to purchase mainland-traded shares and for Chinese buyers to buy Hong Kong-traded shares.
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