Opening up of banking will improve market efficiency

China's decision to further open up its banking sector will broaden the scope of foreign banks' business, improve market efficiency through competition and contribute to the steady development of the Chinese banking sector, according to bankers and academics.

The China Banking Regulatory Commission, the country's top banking regulator, said on Wednesday that it will ease limits on foreign ownership in Chinese banks and asset management companies.

According to the existing rules, a single overseas financial institution and its related parties can own up to 20 percent of a Chinese commercial bank, while multiple overseas financial institutions and their related parties can own up to 25 percent.