Xinhua reported on Sunday evening that China’s state banking regulator has introduced legislation to cut red tape for foreign banks in a bid to further investment into the country’s financial sector.
The new policies, effective since February 13th, appear to be confirmations of measures drafted in December by the China Banking Regulatory Commission (CBRC). The overall effect will be less bureaucracy for foreign banks engaging in activities such as lending and branch openings.
Such banks will now only have to report services to authorities, instead of gaining approval in advance of operations. The changes will apply to four areas of finance, including wealth management products and portfolio investment funds, according to a report released by the CBRC.