Mubasher: China plans to end foreign ownership limits on financial companies, a year earlier than previously intended, as it ramps up efforts to open the $44 trillion industry to overseas competitors, Reuters reported.

“We will achieve the goal of abolishing ownership limits in securities, futures, life insurance for foreign investors by 2020, a year earlier than the original schedule of 2021,” Chinese Premier Li Keqiang was quoted by the news agency.

This was hailed by JPMorgan and Citigroup, as foreign investment banks are looking to own controlling stakes in onshore securities joint ventures (JV) in China under the libralised rules announced in 2017.

In addition, China plans to cut curbs next year on foreign investors’ access to market in the value-added telecoms services and transport industries, Li said.

The premier’s remarks came after Chinese President Xi Jinping and his US counterpart Donald Trump agreed to restart trade talks in an attempt to put an end the trade conflict between the world’s biggest two economies.

Li noted that protectionism was on the rise, pointing to a slowdown in global economy.

“Currently, global economic risks are rising somewhat, international investment and trade growth is slowing, protectionism is rising and unstable and uncertain factors are increasing,” he said.

Li urged action to counter such risks, referring to measures taken worldwide such as cutting interest rates and quantitative easing (QE).

The trade conflict between the US and China took a heavy toll on business sentiment worldwide, disrupted supply chains, and rattled financial markets, on top of mounting worries global growth which prompted central banks in Australia, New Zealand, India, and Russia to cut interest rates.