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China pledges to scrap financial sector ownership limits in 2020, one year early

China will end ownership limits for foreign investors in its financial sector in 2020, a year earlier than scheduled, to show the world it will keep opening up its markets, Premier Li Keqiang said on Tuesday.

Beijing’s signal that it is quickening the pace of opening up came after the presidents of China and the United States agreed over the weekend to restart trade talks in another attempt to strike a deal and end a bruising tariff war.

China will also further open its manufacturing sector, including the auto industry while reducing its negative investment list that restricts foreign investment in some areas, - Li told the World Economic Forum in the northeastern Chinese port city of Dalian.

Analysts doubt the ceasefire between China and U. S. will lead to a sustained easing of tensions and warn lingering uncertainty could dampen corporate spending and global growth.

“We will achieve the goal of abolishing ownership limits in securities, futures, life insurance for foreign investors by 2020, a year earlier than the original schedule of 2021,” Li said.

China will make timely use of reserve requirement ratio (RRR) cuts and other financing tools to support small and private firms, Premier Li Keqiang said on Tuesday.

China will significantly lower real financing costs for small firms, with a one percentage point cut this year targeted, Li said at the World Economic Forum in the northeastern Chinese port city of Dalian.