China recently opened its financial system to more foreign ownership, allowing foreign investors to take controlling interests in Chinese securities firms and insurance companies, among others. Despite the relaxation of ownership rules, the investment environment might not be favorable, given the recent spate of investigations that have led to Chinese banking executives getting sacked.
Cai Guohua, chairman of Hengfeng Bank, one of 12 joint stock commercial banks in China, is currently under investigation for serious violations of Party discipline—an oft-used euphemism for corruption—reported Chinese business news publication Caixin on Nov. 28.
