The move was announced today one day after United States president Donald Trump, pictured left, called on his counterpart president Xi Jinping to allow great access to the domestic market for U.S. companies.
Changes to foreign ownership rules on Chinese financial firms are effective immediately, a vice finance minister said on Friday.
These latest steps announced are the biggest since 2007 when foreign banks were given green light to set up locally incorporated operations in the country.
The deputy finance minister also aid that China would similarly raise such limits in insurance companies and eliminate curbs after five years.More news: What happened in apex court on Friday?
Besides first time investors, investment cap on existence foreign banks will be allowed to increase their stakes in Chinese banks and asset managers, Zhu said in a press released by the State Council which functions under premier Li Keqiang.
The Chinese government uses joint venture requirements and ownership limits to protect its domestic industries from foreign competition, as well as forcing foreign companies to share technology and knowledge with Chinese partners.
That cap was behind JPMorgan Chase & Co.'s move to exit its China venture, as it sought a new structure that would give it more say in decision making.
"China is a key market for UBS and... we continue to work towards increasing our stake in [joint venture] UBS Securities".