China is reportedly set to ‘open up’ its financial sector further.

Li Yunze, the newly appointed director of China’s National Administration of Financial Regulation (NFRA), has reportedly told Citigroup chief executive Jane Fraser that the country will “further open up its financial markets to foreign investors”.

The US bank offers corporate and institutional banking, global markets and wealth businesses in China, all business activities overseen by the NFRA.

According to Reuters, Li told the Citi exec that the country will open its financial sector as part of ongoing efforts from municipal governments and business officials to attract foreign direct investments. This however may be complicated by the US, with the Biden administration recently laying out rules that would prohibit deals in critical sectors like microchips and other areas which may contribute to China's technological and military expansion.

Fraser is the first foreign banking chief to meet with Li since he took on the role in May, with a raft of other banking heads including J.P Morgan chief executive chief Jamie Dimon reportedly having made visits to the country in recent weeks.

In a statement published by the NFRA, Fraser said that Citi is "fully confident in China's economic and financial growth" and said that the bank "will play to its strength and continue to expand its business in China”. Citi last year began winding down its retail business in the country in a move which will impact around 1,200 local staff.

The NFRA recently replaced former regulatory body the China Banking and Insurance Regulatory Commission in efforts to consolidate oversight and close loopholes in the country.

Creation of the NRFA comes as one part of a wider reformation in China across its state institutions since Chinese Communist Party leader Xi Jinping assumed an unprecedented third term as leader.

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