The State Administration of Financial Regulation: Abolish the restrictions on foreign capital participation, acquisition, and capital increase of domestic financial institutions
Sure enough, it was not a rumor, and it was finally officially announced, and foreign media reports confirmed that it was not groundless, and it was false, and the 2 trillion yuan equalization fund had already been loaded into the market. At today's press conference of the State Council, the State Administration of Financial Supervision has lifted the restrictions on the equity ratio of foreign capital participation, acquisition and capital increase of domestic financial institutions.
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In the past, there have always been clear restrictions on the proportion of equity in domestic financial institutions in which foreign institutions can participate, acquire or increase their capital.
Now that the restriction is being lifted, the impact will be epic, revealing at least three implications:
1. The overseas assets of the national team will accelerate the return of investment:
Overseas funds of state-owned enterprises and central enterprises can set up investment funds through foreign investors and participate in the investment of domestic financial institutions.
2. Greatly attract foreign capital to buy Chinese assets:
Comprehensively expanding the opening up of the financial sector will certainly attract more foreign capital to flow into China. Foreign-funded institutions can invest in domestic financial institutions in the form of equity participation, acquisition, capital increase, etc., and there is no restriction on the proportion of equity, as long as the price is advantageous, it is not impossible to invest in becoming the controlling shareholder of domestic financial institutions.
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3. Increase the liquidity of offshore RMB and appreciate RMB:
Foreign investors buying China's ultra-low-priced financial assets at this stage will inevitably increase the liquidity of offshore RMB, and the RMB may usher in a wave of medium and long-term appreciation, and the proportion of RMB in international circulation will naturally increase.
Summary: The national team's overseas funds join hands with foreign capital to buy ultra-cheap Chinese financial assets
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Big A cheap chips, they must be fed. And stockholders can only slow down a few beats, and heavyweight stocks such as central enterprises, state-owned enterprises, and big finance are likely to be the theme of the new cycle.
Alas, after all, foreign capital is cheaper...