Accelerated opening up of China's financial sector

Accelerated opening up of China's financial sector

A report examining the implications of the announcement accelerating the opening up of China’s financial sector

data transmission channels

KPMG China’s latest analysis looks at the implications for investors after the State Council announced on 20 July 2019 that it would accelerate the process of relaxing restrictions on foreign ownership in China’s financial sector.

Proposals to phase out foreign ownership limits in the financial sector were initially announced in November 2017.  KPMG’s article, Accelerated opening up of China’s financial sector, notes this is the second time since then that the timeline has been brought forward.  

The State Council confirmed it would allow full foreign ownership in the life insurance, securities, fund management and futures sectors in 2020 instead of 2021, and the lifting of the 25% foreign ownership cap on insurance AMCs. The 30-year track record requirement on foreign sponsors of insurance companies in China will also be abolished. 

Key highlights 

  • While earlier measures focused on the banking, insurance and asset management industry, this time peripheral sectors including credit rating, money brokerage, and underwriting of bonds are affected 
  • Allowing foreign firms to take controlling shares in the credit rating, bond underwriting and money brokerage sectors will allow foreign banks, insurers, securities firms and asset managers to access critical local resources and infrastructure to build a thriving business 
  • While removal of the ownership cap is expected to allow foreign players to be more active in the China market, they still face various obstacles including inter-provincial expansion, product approval, and distribution through banking channels. 

We hope you find this publication useful and informative. Please share it with your clients and contacts. If you have any comments or questions, please contact us.

© 2024 KPMG Huazhen LLP, a People's Republic of China partnership, KPMG Advisory (China) Limited, a limited liability company in Chinese Mainland, KPMG, a Macau (SAR) partnership, and KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

The KPMG name and logo are trademarks used under license by the
independent member firms of the KPMG global organisation.

For more detail about the structure of the KPMG global organisation please visit


Connect with us