The country will lift the ceiling on foreign ownership in joint-ventures involved in securities and fund management to 51% and the cap will be removed three years after, said Vice Minister of Finance Zhu Guangyao.
The move was announced today one day after United States president Donald Trump, pictured left, called on his counterpart president Xi Jinping to allow great access to the domestic market for U.S. companies.
China will ease restrictions on foreign ownership stakes in the financial sector a senior Chinese official has said.
Also, in May, China pledged to allow foreign credit rating agencies to form wholly owned units in the market.
Foreign banks will be allowed to hold majority stakes in joint ventures with Chinese securities companies and life insurers.
"Symbolically, this is a very important move".
"China is a key market for UBS and... we continue to work towards increasing our stake in [joint venture] UBS Securities". "This can also alleviate pressure from the United States government".
China's financial services industry is one of the fastest growing in the world, and the second-largest economy in the world.
In June, outgoing central bank governor Zhou Xiaochuan said that the insulation of Chinese financial firms from foreign competition has made them "lazy".
However, experts cautioned that it will take some time before these announcements become concrete actions.