BEIJING, Nov. 27 (Xinhua) -- China decided to remove the threshold of one billion-U.S. dollar total asset of foreign financial institutions to acquire stakes in trust firms in the country, reported Xinhua Finance, a Xinhua-run financial information platform earlier this week.
The Chinese regulator China Banking and Insurance Regulatory Commission (CBIRC) on Tuesday released rules for trust firm related administrative approval affairs, noting that the move was for further opening-up.
For foreign financial institutions, they need to meet 11 requirements in taking a stake in a trust firm in China, including consecutive profiting in the last two fiscal years and being located in countries or regions with pleasant economic conditions or sound supervision and administration cooperation mechanisms with CBIRC.
Besides, foreign financial institutions as investors purchasing stakes in trust firms in China are required to abide by the principle of long-term equities holding, governance optimization, business cooperation, and competition avoiding. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
