CRI听力:Measures to further open up China's financial sector underway

Measures announced earlier last month to further open up China's financial sector are now underway, with a number of foreign investors now taking part.

China's top securities watchdog is reviewing an application by UBS for a majority shareholding in a joint-venture securities brokerage firm.

UBS is applying to raise its shareholding in UBS Securities from 24.99% up to 51%, giving it a controlling interest in the company.

It is the second largest shareholder in the investment bank and brokerage firm after Beijing Guoxiang Property Management.

The move comes after the China Securities Regulatory Commission issued a new regulation at the end of April regarding foreign investment in China's securities firms. 

The new regulation allows foreign shareholders ownership of up to 51% of a securities firm based in China.

Qualified foreign investors can now submit applications to register a change in controlling interest.

Xie Yaxuan, the chief macro-economic researcher at China Merchants Securities, says the move shows China's sincere attitude towards the opening of its economy.

"On the one hand, we allow foreign businesses to own shares in securities joint ventures, which shows that we're sincere in opening up our securities sector to the rest of the world. On the other hand, overseas funds and foreign investment are interested in China's capital market, so both sides can participate easily," says Xie.

The expert adds that the opening of the securities sector is an important part of China's development.

"Although there will be much more competition with foreign investors taking part, the market will also expand thanks to their participation. An expanded market will bring more opportunities to China's domestic securities firms," says Xie.

China's central bank, the People's Bank of China, has received the first application from a foreign payment company to enter the country's third-party payment industry.

The application was submitted by WorldFirst, which is an international foreign exchange service provider.

On the same day the WorldFirst application was lodged, the central bank also received an application from Experian, a British provider of consumer and business credit reporting, which wants to offer corporate credit information within China.

Zhao Xijun, the deputy director of the School of Finance at Renmin University, expects moves such as these to bring mutual benefits both within, and outside of, China's borders.

"The new round of opening up is granting national treatment to foreign investors. China's opening up has provided more opportunities for global social and economic development, especially for players in the economic sector, such as enterprises, investors, traders, and financial institutions," says Zhao.

During the Boao Forum for Asia in April, specific measures were fleshed out for the further opening of China's economy, along with a timetable for the changes.

Restrictions on foreign equity in banks and financial asset management firms are being dropped, while foreign equity in securities, funds, futures, and life insurance companies are being capped at 51%, and this limitation will be eventually phased out in three years.