China opens up finance sector to more foreign investment

China lifted some restrictions on foreign investment in the financial sector Saturday, as the world's second largest economy fights slowing growth at home and a damaging trade war with the US.

China will remove shareholding limits on foreign ownership of securities, insurance and fund management firms in 2020, a year earlier than originally planned, the Financial Stability and Development Committee said in a statement posted by the central bank Saturday.

Foreign investors will also be encouraged to set up wealth management firms, currency brokerages and pension management companies, the statement said.

Beijing has long promised to further open up its economy to foreign business participation and investment but has generally dragged its feet in implementing the moves -- a major point of contention with Washington and Brussels.

Saturday's announcement followed a Friday meeting chaired by economic czar Liu He where policymakers focused on tackling financial risk and financial contagion ..