The Securities Industry and Financial Markets Association lauded China for lifting limitations on foreign firms from investing in Chinese securities firms.

“We commend American and Chinese officials for engaging in this important dialogue, which will play a key role in advancing the U.S.-China economic relationship. Eliminating burdensome barriers to entry is a win-win for the economies of both nations,” said Marc Lackritz, SIFMA president and CEO following the conclusion of the U.S.-China Strategic Economic Dialogue in Washington, D.C. “American financial services firms will be given new opportunities for growth, while at the same time assisting their Chinese counterparts with the development of a modern financial services system.”

According to the U.S. State department, China agreed to remove a block on the entry of new foreign securities firms and resume licensing securities companies, including joint-ventures, in the second half of 2007. In addition, China will announce that it will allow foreign securities firms to expand their operations in China to include brokerage, proprietary trading and fund management. China will also raise the quota for Qualified Foreign Institutional Investors from $10 billion to $30 billion.

“We are particularly pleased the Chinese have taken a critical first step towards this goal by lifting the moratorium imposed on foreign investment in Chinese securities firms,” Lackritz added. “In order for the Chinese to fully benefit from American financial services expertise, US firms will need much broader access to Chinese markets. Handicapping American firms with a cap on investment and ownership does nothing but hinder Chinese growth and development.”

SIFMA urged continued dialogue between the US and China in an effort to completely remove foreign ownership caps.

Additionally, the China Insurance Regulatory Commission will rule by August 1, on applications for conversion from branch to subsidiary that have been pending for more than a year; China agreed to immediately allow foreign-invested banks to offer their own brand of RMB-denominated credit and debit cards; and, the Chinese government agreed to streamline the application and licensing process for the provision of enterprise annuities by financial institutions.