Officials in China are planning to loosen the financial sector in the country in an effort to attract foreign investors, state media quoted the cabinet as saying, per a Reuters report on Wednesday (July 21).
The country is planning to enhance regulations for international financial institutions and insurance providers seeking to enter the Chinese market. In addition to attracting foreign investments, the move is intended to boost the economy in China, per the report.
China also will enhance the laws surrounding cross-border exchanges between parent companies and subsidiaries. Further, the country is working on improving its macroprudential framework to mitigate risk to the financial system as a whole.
The state cabinet indicated that China will keep the yuan exchange rate stable while fostering steady expansion in imports and exports, Reuters reported.
Companies seeking a foothold in China have to contend with privacy issues and data regulations in addition to continuous probes regarding daily business activities. China has also implemented new mandates around state-side businesses looking to go public in the U.S.
China’s halting of Ant Group’s $37 billion public listing last year is being used as an example to other technology firms in the region. The People’s Bank of China and other regulators implemented new measures three months ago to restructure Ant Group, forcing the tech giant to spin off Alipay from its other business interests.
JPMorgan Chase said in June that it is looking to gain full control over its joint venture in China, which would allow the financial institution to expand its operations there and fully tap the country’s multi-trillion-dollar financial space.
J.P. Morgan Chase paid $410 million in March to acquire a 10 percent stake in the state-owned China Merchants Bank. It’s the only time a Chinese bank gave foreign investors control over a wealth management subsidiary.