The State Council has recently issued the Opinions on Further Improving the Use of Foreign Capital (the "Opinions").
The Opinions outline 20 policy measures in four aspects, including: 1. deepening opening up; 2. stepping up efforts to promote investment; 3. deepening the reform on investment facilitation; and 4. protecting lawful rights and interests of foreign investors. Among others, the Opinions stress efforts to continue to shorten the negative lists for foreign investment access applicable nationwide and in pilot free trade zones, remove restrictions in all aspects that are not included in the negative lists, ensure opening-up measures are implemented effectively, and constantly expand openness. In addition, the Opinions expressly state that limits on the business scope of foreign financial institutions in China, including foreign banks, securities companies and fund management companies, will be lifted completely. Also, the scope of shareholders allowed to invest in foreign banks and foreign insurance institutions will be widened; the requirement that the sole Chinese shareholder or the major shareholder of a Sino-foreign joint venture bank must be a financial institution will be abolished, and foreign insurance conglomerates will be allowed to invest to establish insurance institutions. The restriction that the foreign shareholding in securities companies, securities investment fund management companies, futures companies, and life insurance companies cannot exceed 51%, is about to be scrapped in 2020.