China's top securities watchdog has approved the establishment of a fund management firm wholly owned by overseas investors amid the country's financial opening-up efforts.

The new fund management company, with a registered capital of 30 million U.S. dollars, was fully invested in by FIL Asia Holdings Pte. Limited, according to the China Securities Regulatory Commission (CSRC).

Registered in Shanghai, the company was approved by the CSRC to conduct business including management of publicly offered funds, fund sales, and private equity asset management.

The new firm is required to abide by Chinese laws and regulations, including the cybersecurity law, and strengthen compliance management in terms of the cross-border flow of business data and investors' personal information, the CSRC said.

China has been widening the access to its financial sector for foreign investors, attracting global asset management giants such as BlackRock and Fidelity International to set up companies.