Courtesy demands reciprocity, as the Chinese saying goes. US president Donald Trump was effusively courteous during his visit to China last week, at one point describing Xi Jinping, his Chinese counterpart, as a “very special man”. On one level, therefore, Beijing’s announcement of a financial market liberalisation on Friday — a day after Mr Trump left the country — might be interpreted as a reward.

But any such symbolism is the least significant aspect of China’s decision to ease limits on foreign ownership of financial services groups. Under the announcement, foreign firms will be allowed to hold a majority stake in joint ventures with Chinese securities companies and life insurers. In addition, caps on foreign banks’ stakes in Chinese banks and asset managers are to be removed, according to a statement by China’s state council.

The move is important in two ways. The liberalisation — for which a full timetable has not been announced — ranks as one of China’s biggest in financial services since the country joined the World Trade Organization in 2001. China has used joint venture requirements and ownership caps in a range of industries to protect domestic groups from competition, and to induce sharing of foreign technology and expertise.