General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
August 23, 2018

CBIRC issued a Decision to abolish and amend certain regulations, with the aim to implement the policy spirit of the 19th National Congress of the Communist Party of China on promoting the formation of a new pattern of comprehensive opening up and on promoting the announced expansion of the banking industry as soon as possible. As part of the Decision, the restrictions on the proportion of foreign-invested shares of Chinese banks and financial asset management companies will be abolished. Additionally, the rules for the proportion of equity investment in domestic and foreign capital will be implemented to continuously promote the convenience of foreign investment. The Decision will be implemented as of the date of promulgation, which is August 17, 2018.

The Decision mainly has the following four aspects:

  • The first is to abolish the "Measures for the Administration of Overseas Financial Institutions to Invest in Chinese-funded Financial Institutions." In accordance with the principle of national treatment, there is no separate regulation for foreign-invested Chinese-funded financial institutions, and Chinese and foreign-funded enterprises apply uniform market access and administrative licensing methods.
  • The second is to cancel the "Implementation Measures for the Administrative Licensing Issues of Chinese Commercial Banks of China Banking Regulatory Commission," the "Implementation Measures for the Administrative Licensing Issues of Rural Small and Medium-sized Financial Institutions of the China Banking Regulatory Commission," and the "Implementation Measures for the Administrative Licensing Issues of Non-bank Financial Institutions of the China Banking Regulatory Commission" for foreign investment in Chinese banks. Delete the relevant provisions of the above three licensing methods regarding the investment of a single overseas financial institution and its related parties as sponsors or strategic investors to individual Chinese commercial banks and rural commercial banks and as strategic investors to individual financial asset management companies. The ratio for this shall not exceed 20% while the ratio of the investment of a number of overseas financial institutions and their related parties to the above institutions shall not exceed 25%.
  • The third is to clarify the regulatory attributes and legal application of Chinese banks that are foreign-owned. In accordance with the principle of equal treatment of Chinese and foreign capital, if foreign financial institutions invest in Chinese-funded commercial banks and rural small and medium-sized financial institutions, the organization and supervision of the institution at the time of shareholding will be supervised and managed, and the type of institutions of the bank will not be adjusted due to foreign investment.
  • The fourth is to clarify that overseas financial institutions invest in Chinese banks. In addition to complying with relevant financial prudential regulations, they should also abide by foreign-funded basic laws on foreign investors investing in China.


Related Links (in Chinese)

Effective Date: August 17, 2018

Keywords: Asia Pacific, China, Banking, Decision, Administrative Licensing, Foreign Owned Banks, CBIRC

Related Insights

BCBS Finds Liquidity Risk Management Principles Remain Fit for Purpose

BCBS completed a review of its 2008 Principles for sound liquidity risk management and supervision. The review confirmed that the principles remain fit for purpose.

January 17, 2019 WebPage Regulatory News

HKMA Urges Local Banks to Start Working on FRTB Implementation

HKMA announced that it plans to issue a consultation paper on the new market risk standard in the second quarter of 2019.

January 17, 2019 WebPage Regulatory News

EBA Finalizes Guidelines for High-Risk Exposures Under CRR

EBA published the final guidelines on the specification of types of exposures to be associated with high risk under the Capital Requirements Regulation (CRR). The guidelines are intended to facilitate a higher degree of comparability in terms of the current practices in identifying high-risk exposures.

January 17, 2019 WebPage Regulatory News

MAS Guidelines on Risk Mitigation Requirements for OTC Derivatives

MAS published guidelines on risk mitigation requirements for non-centrally cleared over-the-counter (OTC) derivatives contracts.

January 17, 2019 WebPage Regulatory News

BoE Publishes the Schedule for Statistical Reporting for 2019

BoE published the updated schedule for statistical reporting for 2019. The reporting institutions use the online statistical data application (OSCA) to submit statistical data to BoE.

January 16, 2019 WebPage Regulatory News

PRA Delays Final Direction on Reporting of Private Securitizations

PRA and FCA have delayed the issuance of final direction, including the final template, on reporting of private securitizations, from January 15, 2019 to the end of January 2019.

January 15, 2019 WebPage Regulatory News

SNB Updates Forms on Supervisory Reporting for Banks

SNB published Version 1.7 of reporting forms (AUR_U, AUR_UEA, AUR_UES, AURH_U, AUR_K, AUR_KEA, and AURH_K) and the related documentation for supervisory reporting on an individual and consolidated basis.

January 15, 2019 WebPage Regulatory News

BCBS Finalizes Market Risk Capital Framework and Work Program for 2019

BCBS published the final framework for market risk capital requirements and its work program for 2019. Also published was an explanatory note to provide a non-technical description of the overall market risk framework, the changes that have been incorporated into in this version of the framework and impact of the framework.

January 14, 2019 WebPage Regulatory News

EBA Single Rulebook Q&A: First Update for January 2019

EBA published answers to 13 questions under the Single Rulebook question and answer (Q&A) updates for this week.

January 11, 2019 WebPage Regulatory News

PRA Proposes to Amend Supervisory Statement on Credit Risk Mitigation

PRA published the consultation paper CP1/19 that is proposing changes to the supervisory statement (SS17/13) on credit risk mitigation.

January 10, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2473