The President of the People’s Republic of China and the People's Bank of China announced their intentions to open up China’s financial markets to promote foreign competition. For now, foreign ownership is limited for banks and asset management companies. Within a few months the foreign ownership cap will be removed. These changes will open the market to foreign investors and banks, giving the opportunities to set-up branches and subsidiaries.

Changes will also affect securities companies, fund managers, futures companies, and life insurers. These businesses will have the foreign ownership cap set at 51% and after 3 years this limitation will be removed. Foreign agents will also be allowed to provide insurance agent and loss adjuster services. Basically, companies with foreign ownership will be treated the same way as those with domestic capital.

Moving forward to stock markets - changes will apply as well. From the May 1st, 2018, daily stock quota between the Hong Kong and mainland will change. Hong Kong-bound investment will be increased to CNY42bn and Shanghai-bound and Shenzhen-bound to CNY52bn for investment. These changes will open new ways for traders and will allow them to broaden cross-border trading. Moreover, the People’s Bank promises to make a stable connection between London stock market and Shanghai stock market.