On December 16th the National Development and Reform Commission (NDRC, the top economic-planning body) released a revised national market-access negative list that states which sectors are prohibited or restricted to private investors, both Chinese and foreign.

The number of prohibited or restricted sectors was reduced to 123 from 131 previously, with the goal of reducing the burden on businesses. Private companies can still apply to the NDRC to invest in the listed sectors, but they are reviewed on a case-by-case basis. Sectors that are not on the list are open to investment and do not require review. There is a separate negative list specifically for foreign investment, as foreign entities are subject to more restrictions than are domestic ones.

Following the revision, assessment of forestry resources and assets, as well as qualification accreditation of institutions eligible for mining rights assessment, will no longer require government approval. Such a waiver is also granted to verification agencies for carbon-emissions trading. The authorities are likely seeking to increase private-sector involvement in service provision for carbon trading to improve environmental sustainability, with the goal of becoming carbon neutral by 2060.

The NDRC removed licensing requirements in the securities segment, as part of the continued liberalisation of the financial sector. Asset-evaluation companies no longer need to apply for a licence to provide securities services, and securities companies will have greater flexibility to appoint their company directors, supervisors and senior managers.

The NDRC added new regulations for financial holding companies, when the controlling stake of the company is transferred from one entity to another and when it invests or controls stakes in other financial companies. This is probably in response to recent financial-market openings, which allow foreign entities to take controlling stakes in certain financial-services firms. The NDRC also added a new restriction on large-scale transfer of land-management rights. The government purposefully governs the use of land strictly in order to protect the interests of the state, the farmers and social order, as well as preserve 120m ha of farmland to ensure self-sufficiency in critical food staples.

The revisions to the negative list will not result in any significant market openings that would affect The Economist Intelligence Unit’s investment forecast. However, there may be some sectorial opportunities for certain firms, especially in inspection and testing services and carbon-trading service provision, as a result.