China has raised the shareholding limit for foreign investors from 20% to 30%, indicating further liberalization of China’s financial markets is on the cards, Reuters reported. Analysts suggest regulators are hoping to attract foreign investment at a time when the Chinese stock market is weak. But lackluster growth of China’s economy and corporate governance issues means the move is unlikely to excite flagging interest from foreign investors. The move comes ahead as the central bank tries to turn Shanghai into a global financial center by pushing capital market reforms through.
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