MNI BRIEF: China to Facilitate Foreign Lenders Seeking Entry

China will facilitate foreign financial institutions entering its domestic market by optimizing the requirement for banks and insurers, ease crossborder transactions between parent companies and subsidiaries, and improve governance on how foreign capital operates in the domestic financing market, the People's Bank of China said.

China's financial markets are increasingly appealing to foreign investors, as evident in the CNY1.27 trillion foreign acquisition of domestic assets including stocks, bonds, deposits, Deputy Governor Chen Yulu said on Saturday at the China International Finance Annual Forum 2021.

China will gradually adopt the negative-list approach while opening the financial sector under trade agreements, said Chen. Financial services under the Regional Comprehensive Economic Partnership (RCEP) will be dealt with by the negative-list management method in six years from the effective date, he said.

The negative list approach excluding areas for investments protects China's economic and financial security, Chen added.