Legislation roundup: Foreign banks, debt assets and foreign insurance companies
October 16, 2019 | BY
Susan MokThe State Council has lifted investment restrictions on foreign banks and insurance companies while the People's Bank of China has tightened control on banks' wealth management business.
Banking
State Council, PRC Regulations for the Administration of Foreign-invested Banks (Revised in 2019)
A foreign bank may establish both wholly foreign-owned banks and foreign bank branches, or Sino-foreign equity joint venture banks and foreign bank branches in China.
The minimum amount of a fixed-term deposit that a foreign bank branch may accept from a citizen in China is reduced from at least Rmb1 million per deposit to at least Rmb500,000 per deposit.
See the full translation.
Further reading
People's Bank of China, Rules for the Recognition of Standard Debt Assets (Draft for Comments)
The Rules expressly state that an infrastructure institution that provides infrastructure services such as registration, custody, clearing, settlement, etc. for debt assets, shall be the applicant entity to submit an application for recognition of standard debt assets to the People's Bank of China.
Further reading
Insurance
State Council, PRC Regulations for the Administration of Foreign-funded Insurance Companies (3rd Revision)
Foreign insurance group companies are allowed to invest in and establish foreign-funded insurance companies in China, while overseas financial institutions are permitted to acquire equity stakes in foreign-funded insurance companies.
See the full translation.
Further reading
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