China may raise foreign stake cap in trusts -media

BEIJING, June 10 (Reuters) - China may raise the ceiling on foreign investment in its trust companies to 49 percent, a step forward for Beijing in opening its financial markets to outside players, Caijing Magazine reported.

Investments by foreign firms in Chinese trust companies are currently capped at 20 percent.

The well-respected financial magazine said in its latest issue there was "a very big possibility" that China's banking regulator would push the limit much higher, though it gave no timeline for such a move.

If the cap is increased to just shy of half, it would make trust companies one of the Chinese financial sectors most open to outside money.

Since Beijing overhauled the structure of its trust companies last year, there has been a flood of foreign interest and three deals have been struck.

Britain's Barclays Bank (BARC.L: Quote, Profile, Research, Stock Buzz) bought a 19.99 percent stake in New China Trust and Investment Co. National Australia Bank (NAB.AX: Quote, Profile, Research, Stock Buzz) picked up a 20 percent stake in Union Trust Investment. And Britain's Ashmore Group (ASHM.L: Quote, Profile, Research, Stock Buzz) acquired 19.99 percent of Beijing International Trust, Caijing said.

It also listed a bevy of tie-ups still in the works, some of which have previously been reported:

-- Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) is near to taking 19.99 percent of Hangzhou Industrial and Commercial Trust, subject to regulatory approval;

-- Australia's Macquarie Bank (MQG.AX: Quote, Profile, Research, Stock Buzz) is aiming for 20 percent of Kunming Trust;