China lifts foreign ownership limits on financial firms

President Donald Trump reiterated calls for better access to Chinese markets in meetings with Chinese President Xi Jinping. Above, Trump meets Xi at a state dinner at the Great Hall of the People in Beijing. (Reuters)
Updated 10 November 2017
0

China lifts foreign ownership limits on financial firms

BEIJING: The Chinese government on Friday said it will raise foreign ownership limits in domestic financial firms, a long-anticipated step that grants greater access to overseas investors into the Asian giant’s financial services market.
The move, announced by vice finance minister Zhu Guangyao, comes a day after US President Donald Trump reiterated calls for better access to Chinese markets in meetings with Chinese President Xi Jinping.
The changes include raising the limit on foreign ownership in joint-venture firms involved in the futures, securities and funds markets to 51 percent from the current 49 percent. They will take effect immediately following the drafting of specific related rules, Zhu told a news conference.
The plan to ease ownership restrictions comes as Beijing faces mounting pressure from Western governments and business lobbies to remove investment barriers and onerous regulations that restrict overseas companies’ operations in its markets.
During his trip to Beijing this week, Trump said that trade between the two nations was unfair, and called for greater market access for US companies.
“We really have to look at access, forced technology transfer, and the theft of intellectual property, which just, by and of itself, is costing the United States and its companies at least $300 billion a year,” Trump said.
“Both the United States and China will have a more prosperous future if we can achieve a level economic playing field. Right now, unfortunately, it is a very one-sided and unfair one.”
China will drop foreign ownership restrictions on local banks and asset management companies, Zhu said, adding that the time is right for world’s second biggest economy to step up the liberalization of its financial sector.
Full foreign ownership of local firms involved in the futures, securities and funds markets will not be permitted until after three years, while full overseas ownership of insurance firms will be allowed only after five years, Zhu said.


Scientific study finds asylum seekers boosting European economies

Updated 17 min 53 sec ago
0

Scientific study finds asylum seekers boosting European economies

  • Asylum seekers contributed most to a country’s gross domestic product after three to seven years, the research found
  • The findings come amid a rise of anti-immigrant sentiment across Europe, where immigration peaked in 2015 with the arrival of more than a million refugees and migrants from the Middle East and Africa

NEW YORK: Asylum seekers moving to Europe have raised their adopted nations’ economic output, lowered unemployment and not placed a burden on public finances, scientists said on Wednesday.
An analysis of economic and migration data for the last three decades found asylum seekers added to gross domestic products and boosted net tax revenues by as much as 1 percent, said a study published in Science Advances by French economists.
The findings come amid a rise of anti-immigrant sentiment across Europe, where immigration peaked in 2015 with the arrival of more than a million refugees and migrants from the Middle East and Africa.
An annual report by the United Nations High Commissioner for Refugees released on Tuesday showed the global number of refugees grew by a record 2.9 million in 2017 to 25.4 million.
The research from 1985 to 2015 looked at asylum seekers — migrants who demonstrate a fear of persecution in their homeland in order to be resettled in a new country.
“The cliché that international migration is associated with economic ‘burden’ can be dispelled,” wrote the scientists from the French National Center for Scientific Research, the University of Clermont-Auvergne and Paris-Nanterre University.
The research analyzed data from Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Ireland, Norway, the Netherlands, Portugal, Spain, Sweden and the United Kingdom.
Asylum seekers contributed most to a country’s gross domestic product after three to seven years, the research found. They marginally lowered unemployment rates and had a near-zero impact of public finances, it said.
Greece, where the bulk of migrants fleeing civil war in Syria have entered Europe, was not included because fiscal data before 1990 was unavailable, it said.
Chad Sparber, an associate professor of economics at the US-based Colgate University, said the study was a reminder there is no convincing economic case against humanitarian migration.
But he warned against dismissing the views of residents who might personally feel a negative consequence of immigration.
“There are people who do lose or suffer,” he told the Thomson Reuters Foundation.
“Immigration on balance is good,” he said. “But I still recognize that it’s not true for every person.”