Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Finance

    Opening-up policies to boost competence of financial sector

    By Zhou Lanxu | China Daily | Updated: 2020-04-07 08:42
    Share
    Share - WeChat
    File photo showing pedestrians in front of the AIA building in Shanghai. The Hong Kong-headquartered insurer plans to convert its Shanghai branch into a fully-owned subsidiary. [Photo by Wang Xiaofei/For China Daily]

    China's stepped-up pace in financial sector opening-up amid the COVID-19 outbreak will not only sharpen the competence of its financial industry but contribute to global economic stability, experts said on Monday.

    The country lifted foreign ownership caps on securities firms and mutual fund companies on Wednesday, in line with the requirements of the nation's financial opening-up agenda and the phase-one trade deal agreements between China and the United States.

    This followed the policy of allowing foreign capital to fully own futures and life insurance companies from Jan 1. With this, foreign financial institutions can now tap into the vast Chinese market without ownership limits in sectors like banking, insurance, securities, futures and fund management.

    "Foreign institutions' willingness to operate in China should be much stronger after the removal of ownership caps, which used to be the major factor contributing to their lagging development in China," said Zhang Deli, chief macroeconomic researcher at Yuekai Securities in Guangdong province.

    With more competition from leading overseas players, local institutions will reform themselves faster while market-oriented capital market reform efforts will bear more fruit, Zhang said.

    China's firm steps in financial opening-up will also act as a force against de-globalization, which has gained some popularity amid the global COVID-19 pandemic, and therefore contribute to global economic stability, Zhang said.

    Bian Yongzu, a senior researcher with the Chongyang Institute for Financial Studies at the Renmin University of China, said the global financial turbulence has indicated that investors have turned pessimistic over future economic developments as the pandemic has hurt confidence.

    "But there remains huge development space in China's financial sector. The country's faster pace in opening-up has offered those growth opportunities to global investors, providing a safe haven for investment and shoring up confidence," Bian said.

    Despite the novel coronavirus outbreak, foreign financial institutions have continued to take advantage of the new opening-up policies to expand their presence in China this year.

    On Wednesday, the China Securities Regulatory Commission, the nation's top securities regulator, said it has received applications from US-based BlackRock and Neuberger Berman to establish fullyowned mutual fund management companies in China.

    Other asset management giants, such as Russell Investments and Invesco, have started operation of their new wholly-owned subsidiaries this year.

    In the investment banking industry, US banks Goldman Sachs and Morgan Stanley announced in late March that they had received regulatory approvals to increase ownerships in their Chinese securities ventures to 51 percent. Goldman Sachs said it "will be seeking to move toward 100 percent ownership at the earliest opportunity".

    Moreover, AIA is seeking to convert its Shanghai branch into a fully-owned subsidiary, while JPMorgan is expected to apply to take majority stake in its futures venture.

    Looking forward, Bian said China's opening-up policies, relative stability of financial markets and digitalization of financial business will help offset the negative impact of the pandemic on expansion of foreign financial institutions in China.

    Thomas Cheong, senior vice-president of Principal Financial Group, a US-based global investment manager, said Principal has maintained communication with Chinese partners online in this special time, which has strengthened their mutual trust and laid a more solid foundation for future work.

    "When this (the pandemic) passes, we will be better positioned for fast growth in our business," Cheong said.

    Foreign institutions' investment in China's financial sector, however, may inevitably be delayed over the short term, as their capital strength has been hit by the recent global financial turmoil, Zhang said.

    China is expected to ease entry thresholds and enlarge business scopes for foreign players to deepen opening-up efforts, he said.

    Shi Jing contributed to this story.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    国产又爽又黄无码无遮挡在线观看| 久久99久久无码毛片一区二区| 亚洲日本va中文字幕久久| 亚洲不卡无码av中文字幕| 人妻丰满av无码中文字幕| 在线高清无码A.| 久久精品中文字幕大胸| 日韩乱码人妻无码中文字幕视频 | 亚洲AV无码日韩AV无码导航| 欧美日韩久久中文字幕| 色欲A∨无码蜜臀AV免费播 | 色噜噜综合亚洲av中文无码| 成?∨人片在线观看无码| 亚洲精品无码专区2| 免费A级毛片无码A∨中文字幕下载 | 日韩中文字幕在线| 一本久中文视频播放| 亚洲av日韩av无码黑人| 人妻丰满熟妇av无码区不卡| 国产AV一区二区三区无码野战| 无码精品人妻一区二区三区免费 | 亚洲国产精品成人AV无码久久综合影院 | 少妇无码一区二区三区| 亚洲欧美日韩中文播放| 国产亚洲AV无码AV男人的天堂 | 亚洲av激情无码专区在线播放| 亚洲看片无码在线视频| 日韩欧美中文亚洲高清在线| 免费无码午夜福利片 | 亚洲VA中文字幕不卡无码| 国产亚洲精久久久久久无码AV| 黄A无码片内射无码视频| 国产成人精品无码片区在线观看 | 人妻aⅴ无码一区二区三区| 麻豆亚洲AV永久无码精品久久| 少妇精品无码一区二区三区| 无码GOGO大胆啪啪艺术| 精品无码久久久久国产| 国模吧无码一区二区三区| 久久精品无码一区二区三区日韩 | 超清无码无卡中文字幕|