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ARTICLE · 09 AUGUST 2019

China Banking New Measures For Opening Up

Banking, being a part of financial service industry, has now been fully opened to foreign investment. There is no foreign shareholding restriction on the banking sector

ChinaFinance and Banking

What is the development and the key highlights?

Banking, being a part of financial service industry, has now been fully opened to foreign investment. There is no foreign shareholding restriction on the banking sector. However, wholly foreign-owned banks, joint venture banks (the WFOE/JV Bank) and branches of foreign banks (collectively the FIE Bank(s)) are still subject to separate regulations. Only the banks with foreign shareholdings acquired through acquisition or share participation are regulated in the same way as domestic banks.

The table below lists the main requirements for FIE Banks, which may not apply to domestic banks. You will notice some inconsistency between the different regulations. The application of certain requirements can vary depending on the circumstances. Please contact us should be there anything you wish to discuss.

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