Aggregated News From Investment Management Regulators

Removal of foreign ownership limit in foreign-invested futures companies

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  In August 2018, with approval from the State Council, the CSRC officially released the Administrative Measures for Foreign-invested Futures Companies, according to which the ownership limits of qualified foreign investors in foreign-invested futures companies is relaxed to 51% and will be fully removed in three years. The move was aimed to effectively implement the decisions and plans of the CPC and the State Council to further open up the financial sector and expand foreign investments in domestic futures companies in order to strengthen the industry’s ability and competitiveness in serving the real economy.

  Earlier this year in July, the Office of Financial Stability and Development Committee under the State Council announced that, under the principle of “sooner rather than later”, the timeline of removing foreign ownership limits in foreign-invested futures companies was brought forward to 2020, one year ahead of the original schedule. Since the announcement, the CSRC had been working on specific arrangements to implement the policy and improving regulatory capabilities to fend off risks in a more open market environment.

  With thorough studies and extensive consultations, it is officiated that foreign ownership limit in foreign-invested futures companies will be fully removed as of January 1, 2020. Eligible entities can submit applications to the CSRC in accordance with the Administrative Rules on Futures Trading, the Administrative Measures on the Regulation of Futures Companies, and the Administrative Measures for Foreign-invested Futures Companies for administrative license. Qualified foreign investors can apply for 100% ownership in domestic futures companies and the CSRC will review the applications in accordance with laws and regulations.

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Regulator Information

Abbreviation: CSRC
Jurisdiction: China

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