China Relaxed the Limitation of Ownership of Foreign Capital in Financial Instit

President Trump left China with a warning of China's trade practices. A few hours later, Beijing gave him and Wall Street a little bit of sweetness.

The Chinese government said last Friday that it will liberalize or cancel restrictions on the ownership of foreign-owned banks and securities companies on a large scale. The move may infuse some of China's vast financial system with practical experience. The financial system in China has helped promote the rise of China's economy. However, debt, bubbles and inefficiencies have become a heavy burden on the system in recent years.
Foreign companies may not immediately influx. Global financial institutions have been cautious about investing in China, in part because, in order to do business here, these agencies will be required to buy primarily Chinese-made telecoms equipment and need to deposit financial data in China, which is China's strictest new Network Security Act as part of the requirements.

However, China's move could help Beijing gain political backing from Wall Street banks and securities firms that have made profits from the cost of acquiring Chinese companies in China, but what they have been doing in China for a long time On the restricted.

China needs some friendly people in Washington. In addition to Trump referring to unfair trade during his visit to Beijing last week, Republicans in the House and the Senate also raised a legislative bill in Congress that could increase the Federal government's review of China's acquisition of U.S. companies and won the Trump administration Strong support.

Goldman Sachs Group praised China's move. Goldman Sachs said: "We welcome today's announcement and look forward to playing a greater role in China's capital markets."