China opens up finance sector to more foreign investment

US President Donald Trump has launched a damaging tariff war in an attempt to force Beijing to further open up its economy. (File/AFP)
Updated 20 July 2019

China opens up finance sector to more foreign investment

  • China will remove shareholding limits on foreign ownership of securities, insurance and fund management firms in 2020
  • Beijing has long promised to further open up its economy to foreign business participation and investment

BEIJING: China lifted some restrictions on foreign investment in the financial sector Saturday, as the world’s second largest economy fights slowing growth at home and a damaging trade war with the US.
China will remove shareholding limits on foreign ownership of securities, insurance and fund management firms in 2020, a year earlier than originally planned, the Financial Stability and Development Committee said in a statement posted by the central bank Saturday.
Foreign investors will also be encouraged to set up wealth management firms, currency brokerages and pension management companies, the statement said.
Beijing has long promised to further open up its economy to foreign business participation and investment but has generally dragged its feet in implementing the moves — a major point of contention with Washington and Brussels.
Saturday’s announcement followed a Friday meeting chaired by economic czar Liu He where policymakers focused on tackling financial risk and financial contagion and pledged new steps to support growth, according to a state council statement.
Additional measures include scrapping entry barriers for foreign insurance companies like a requirement of 30 years of business operations and canceling a 25 percent equity cap on foreign ownership of insurance asset management firms.
Foreign owned credit rating agencies will also be allowed to evaluate a greater number of bond and debt types, the statement said.
US President Donald Trump has launched a damaging tariff war in an attempt to force Beijing to further open up its economy and limit what he calls its unfair trade practices.
The US and China have hit each other with punitive tariffs covering more than $360 billion in two-way trade.
Trump and Xi Jinping agreed to revive fractious trade negotiations when they met on the sidelines of the G20 summit in Japan on June 29 and top US and Chinese negotiators have held phone talks this month.


Dubai carrier Emirates doubts Boeing 777x aircraft delivery in 2020

Updated 14 October 2019

Dubai carrier Emirates doubts Boeing 777x aircraft delivery in 2020

  • Emirates is a launch customer of the world’s biggest twin engined jet
  • The US planemaker suspended load testing of the plane when media reports said a cargo door failed a ground stress test

DUBAI: Emirates doubts it will receive any of the 115 Boeing 777-9s it has ordered next year, its president said on Monday, as the US planemaker grapples with challenges in building the jet.
Emirates, a launch customer of the world’s biggest twin engined jet, was to receive its first 777-9 in 2020 but the manufacturer has suspended load testing of the plane.
“... By the end of next year we were to have eight of them. Now it doesn’t look like we will have any,” Tim Clark said at a conference in Dubai.
Boeing suspended load testing of the new widebody in September when media reports said a cargo door failed a ground stress test. There have also been issues with General Electric Co’s new GE9X turbine engine that will power the jet.
Boeing has said it expects to hold the initial flight test in 2020 and is aiming for the 777X to enter commercial service in the same year.
Clark said he had told Boeing he insists on a 13- to 16-month test period for the new jet.
Emirates ordered 150 777X jets, including 777-8 variants, in 2013. It later placed a preliminary order for 40 Boeing 787 Dreamliner jets in 2017, which Clark said he still saw a place for in the airline’s fleet plans.
Boeing has also been unable to deliver any of its 737 MAX aircraft since the single-aisle plane was grounded worldwide in March after two fatal crashes in Indonesia and Ethiopia killed 346 people.
Clark said in September Emirates would not take new Airbus and Boeing planes unless they were truly ready, and said that engine makers Rolls Royce and GE must improve their reliability.
Aircraft manufacturers should not over promise on new aircraft capability, he said on Monday.
Emirates has also signed deals for 40 Airbus A330-900s and 30 A350-900s.