china to let more foreign firms invest in domestic companies

Beijing: China will allow foreign firms not engaged in the investment business to conduct equity investment in domestic companies, the latest in a series of efforts to open up the nation’s financial markets and draw in foreign capital.

Such measures are being taken to further facilitate cross-border investment and trade, according to a statement on the central government website.

China is seeking to make it more attractive and convenient for foreigners to invest in its markets. Over the coming years, the likely emergence of a persistent current-account deficit will mean the nation needs foreign capital to balance its payments. Earlier this month, regulators announced a clearer timetable for foreign financial firms to take full control of onshore ventures.