People's Bank of China governor Yi Gang unveiled the specifics on significant financial reforms at the Boao Forum for Asia, including the abolishment of shareholding limits for foreign-funded banks and financial asset management firms. Our reporter Zou Yun has the story.

A more open, fair and dynamic Chinese financial market is on the way. China's newly appointed central bank governor Yi Gang announced a slew of reform measures on foreign capital entering China's financial market. These include abolishing shareholding limits of foreign-funded banks and financial asset management firms, lifting the shareholding cap to 51 percent for foreign firms of securities, funds, and futures, as well as allowing foreign investors to engage in insurance agent and assessment businesses in China. Yi Gang said those new policies will follow 3 principles.

YI GANG GOVERNOR, PEOPLE'S BANK OF CHINA "The first is the implementation of national treatment and negative list management. The second is to align the process of opening up with the reform of the exchange-rate mechanism, and capital account convertibility. The third is to prevent financial risks. Our risk management capabilities should be compatible with the status of our opening-up process."

Yi Gang said these measures will happen fast – in fact, they are expected to be enacted by end June. These new policies will allow domestic and foreign financial firms to compete on equal footing, and serve the real economy more effectively.

YI GANG GOVERNOR, PEOPLE'S BANK OF CHINA "In the next couple of years after those policies are enacted, I'm fully confident the Chinese financial market will become more competitive and better regulated, and also better serve the real economy."

The central bank chief also addressed the ongoing trade frictions between China and US. He said the country will not resort to yuan devaluation as a counter tactic, but will use rational means to solve the problem.