Photo: VCG

US-based multinational investment bank Goldman Sachs has formed a new subsidiary in China, in an apparent move to step up its presence in the nation's massive financial market as Chinese policymakers continue to ease market access for foreign firms.

Goldman Sachs' new China unit was officially approved on June 28 and has registered capital of $500 million, according to a notice on China's National Enterprise Credit Information Publicity System. The new unit listed Goldman Sachs Investments Holdings (Asia) II Pte as the sole stakeholder.

Based in the China (Shanghai) Pilot Free Trade Zone, the new company will conduct investment activities in areas permitted by the country, the notice said. That would include arranging finance for companies that it has made investments in, offering consultancy for investors and providing associated companies with market information and investment strategies.

"Goldman Sachs is sensing the enormous potential in China because of the continued opening-up measures and moving swiftly to lay the groundwork for future opportunities," said Li Daxiao, chief economist at Shenzhen-based Yingda Securities. "It is a significant move by the US investment bank."

Goldman Sachs' move come as Chinese officials vow to further open the country's financial sector to foreign investors. They have even taken concrete measures in this regard.

During a speech at the World Economic Forum in Dalian, Northeast China's Liaoning Province last week, Chinese Premier Li Keqiang pledged to scrap ownership limits in the securities, futures and life insurance sectors for foreign investors by 2020, a year earlier than scheduled, as part of the country's broad push to speed up financial opening-up.