China further opened its financial sector to foreign investors, with the banking and insurance regulator giving two more foreign financial institutions market access. The China Banking and Insurance Regulatory Commission (CBIRC) approved Munich-based Allianz’s application to begin setting up Allianz (China) Insurance Holding Co, which will become the first foreign-funded insurance holding company in China. The regulator also allowed Chiyu Banking Corp, a licensed bank in Hong Kong, to make preparations to set up a branch in Shenzhen, Guangdong province. Since the beginning of the year, the regulator has made a series of opening-up efforts, including granting preparatory approvals to Fubon Bank (China) Co’s application to establish a branch in Chongqing, and allowing ICBC-AXA Life Assurance Co to establish an asset management company, and Korean Reinsurance Co to set up a branch in China.

With the country further expanding access to its financial market, foreign financial institutions will enter a period of accelerated business growth in China, said Zhang Xingrong, Managing Director of the Institute of International Finance at Bank of China (BOC). “By bringing greater competition to China’s financial sector, foreign financial institutions will help improve the efficiency and quality of financial services and make them more accessible to Chinese customers, while simultaneously reducing service costs,” he added.

The banking and insurance regulator has removed the 20% ceiling on ownership of a Chinese commercial bank or an asset management company by a single foreign investor, and the 25% cap on total foreign ownership of such companies. This month, the Chinese central bank announced it had approved a card clearing joint venture of American Express Co in China, the China Daily reports.