CRI听力:Central bank governor gives details, timetable on financial opening-up

The governor of China's central bank has fleshed out measures and a timetable to further open up the financial sector. 

Yi Gang made the announcement at the Boao Forum for Asia in Hainan. 

China will encourage foreign investors to enter its financial leasing, auto finance, consumer finance and other sectors before the end of this year. 

Central bank governor Yi Gang says the opening policies in the following six areas will be implemented in the coming months:

First, foreign equity restrictions on banks and financial asset management firms will be canceled, with equal treatment for domestic and foreign-funded institutions. Foreign banks will be allowed to set up branches and subsidiaries at the same time in the country.

Second, foreign businesses will be allowed to own up to 51 percent of shares in securities, funds, futures and life insurance joint ventures, and the cap will be phased out over three years. 

Third, securities joint ventures will not be required to have at least one securities firm among its domestic shareholders.

Fourth, daily quotas for the stock connect schemes between the mainland and Hong Kong will be quadrupled starting from May 1. 

Fifth, qualified foreign investors will be allowed to operate as insurance agents and appraisers in the country.

Sixth, foreign-funded insurance brokers will have the same business scope as their Chinese counterparts do.

The central bank governor says the opening up of the financial sector should go together with the reform in exchange rate formation and the process of advancing capital account convertibility.

Yi Gang adds China is well grounded to keep its prudent monetary policy and "fully prepared" for the monetary policy normalization in other major economies.