Menu
Foreign investment into China

News / / Beijing, Hong Kong, Shanghai

In November 2017, China announced an unprecedented reform to its financial sector whereby foreign ownership limits in the sector will be phased out. In April 2018, more details of the reform as well as their implementation timelines were published.

The reform is the most significant break-through in recent years in China’s Reform and Opening policy. Foreign investors will now be able to take controlling stakes in Chinese financial institutions and therefore have greater control of their investments in China. Furthermore, Foreign investors will also be treated exactly the same way as Chinese investors.

The reform will take place across all sub-sectors in the financial sector.  International financial conglomerates will be able to engage in cross- sectoral businesses and have more opportunities to take part in and benefit from the rapid growth of China’s financial sector and economy as a whole in the light of China’s burgeoning middle-class and aging population.

The benefits to both the investors and the Chinese market are significant. Foreign investors will bring to the Chinese financial institutions management expertise, product innovation, new technology, and advanced business models, and hence drive the development of those companies, which will, in turn, bring significant returns to the investors.

Greater foreign ownership in China’s financial sector will bring in greater market competition, enhance the market efficiency, promote a more robust financial sector and further China’s financial stability, all of which will ensure the continued returns on the investments.

Our lawyers, in both our China and London offices, have an in-depth understanding of the market conditions and legal frameworks of China’s financial sectors and are geared for helping businesses wishing to invest in China. We have extensive experience in advising clients on a wide range of complex cross-border transactions including foreign direct investments, mergers and acquisitions as well as banking and finance. Through our local partners, our services will also cover Chinese law regulatory, compliance and licensing issues affecting those doing business in China.

We have been monitoring this development closely and are ready to assist companies wishing to invest into Chinese financial institutions and insurance companies. We will provide regular legal updates as this market develops and evolves.

We will regularly update this page with relevant articles.

To find out more, please contact Fei Mao.

Related sectors:

Related services:

Related news & insights

News / Ince achieve top rankings in the new Chambers and Partners Greater China Region 2022 Guide

18-01-2022 / Insurance, Maritime

The firm maintained its high rankings in Shipping and Insurance across China and Hong Kong jurisdictions.

Ince achieve top rankings in the new Chambers and Partners Greater China Region 2022 Guide

News / Ince appoints Jennette Newman as Partner and Head of Insurance

01-12-2021 / Insurance

Heavyweight hire bolsters the firm’s ability to help insurance clients navigate increasingly complex global challenges.

Ince appoints Jennette Newman as Partner and Head of Insurance

Insights / Success with subrogation in the UAE

25-05-2021 / Insurance

Insurers often perceive subrogated recoveries as challenging and uncertain in this region and that can be true to some extent. 

Success with subrogation in the UAE

Insights / Insurance & Reinsurance guide 2021

25-01-2021 / Insurance

We are pleased to share with you Chambers and Partners 'Insurance & Reinsurance guide 2021', of which Simon Cooper is the contributing editor.

Insurance & Reinsurance guide 2021

Insights / Supreme Court checks out of Orient Express Hotel

19-01-2021 / Insurance

On 15 January 2020, the Supreme Court handed down its judgment in this test case that was initiated by the Financial Conduct Authority (“”FCA”) in order to determine a number of common coverage issues pertaining to the correct response of non-damage business interruption policies to the Covid-19 pandemic.

Supreme Court checks out of Orient Express Hotel

Insights / Decennial Liability in the UAE

05-10-2020 / Insurance

At its core, decennial liability is a form of strict liability imposed on architects, engineers and contractors in the case of total or partial collapse of a building or structure or defects found in the building or structure that threaten the structural integrity of the building.

Decennial Liability in the UAE