China's Regulatory Nod To Yum Underlines Growing Receptiveness To FDI

In another sign of China's softening stance on foreign ownership of local companies, Yum! Brands, a major multinational fast-food chain, received the green light from China's Ministry of Commerce to acquire a further 66.1% stake in Chinese hotpot restaurant operator Little Sheep. While there were concerns that China's antitrust regulators could block Yum's acquisition to protect its local brands from falling into foreign hands, China's regulatory nod ties well into our view that the country will gradually open up its doors for complete foreign ownership in its local companies.

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