China’s blue-chip index extended its rally boosted by Beijing’s move to lift foreign ownership limits on financial firms.
The Chinese government announced on Friday said it will raise foreign ownership limits in domestic financial firms, a long-anticipated step that grants greater access to overseas investors in the Asian giant’s financial services market.
China’s Vice finance minister Zhu Guangyao said the time was right for world’s second biggest economy to step up liberalisation of its financial sector.
“The further opening up will help enhance competitiveness of Chinese financial sector by embracing fuller foreign competition,” Wu Kan, head of equity trading at Shanshan Finance insisted, adding the move could also help channel more overseas money into China’s stock market.
One of the most significant risers was Hong Kong listed AIA, which saw it share price rise 5.6% - closing at 61.60.