China's recent capital market reform
In April 2020, the Chinese government removed the limits on
foreign ownership of fund management, securities, futures, life
insurance, and currency brokerage firms. They implemented the
decision one year earlier than it was initially scheduled.
Previously, foreign financial firms could only obtain a minority
stake in a Chinese joint venture. The joint venture prevents
foreign firms from being overly involved in the Chinese financial
system while allowing its partner firm to learn advanced financial
know-hows. The State Administration of Foreign Exchange also
removed Qualified Foreign Institutional Investors (QFII) and CNY
Qualified Foreign Institutional Investors' (RQFII) investment
quota. Since then, Chinese capital market's further opening has
attracted many agile foreign investors.
