China to remove business restrictions on foreign banks, brokers: Report

China will remove business restrictions on foreign banks, brokerages and fund management firms, a cabinet meeting chaired by premier Li Keqiang on Wednesday said, according to state television.

China has stepped up efforts to open its financial sector amid a festering trade war with the United States, with increased access to its financial sector among a host of demands from Washington.

The country caught traders off-guard with a surprise injection into the financial system via loans to banks, ahead of data on Friday which is expected to show a further slowdown in the domestic economy.

The People’s Bank of China added 200 billion yuan ($28 billion) of one-year cash through the medium-term lending facility. It kept the interest rate steady.  The economy has been under pressure amid a prolonged trade dispute with the US and a slowing domestic economy, prompting the central bank to ease monetary policy by lowering corporate borrowing costs and cutting banks’ reserve ratios this year. Data released this week showed that China’s factory deflation deepened and imports and exports fell last month.