Rules on foreign investment clarified

The China Securities Regulatory Commission said in July that individual foreign firms are allowed to invest in at most two domestic fund management companies and can be the biggest single shareholder in only one of them, Reuters reported. The maximum size of a foreign stake is currently 33 per cent but this will rise to 49 per cent after China has been a member of the World Trade Organisation for three years.
The commission was clarifying rules issued in June. It also reaffirmed that foreign partners in fund management companies must have paid-in capital of at least Yn300m.