China to unswervingly expand financial industry opening-up: banking and insurance regulator
Published: Nov 22, 2022 04:11 PM Updated: Nov 22, 2022 04:06 PM
The 2022 Financial Street Forum Photo: VCG

The 2022 Financial Street Forum Photo: VCG

China will unswervingly expand the opening-up of its financial industry and cultivate a high-class environment for market entities, a Chinese official said on Tuesday at the ongoing 2022 Financial Street Forum in Beijing.

China has introduced more than 50 financial reform and opening-up policies since 2018, and more than 120 foreign banking and insurance institutions have opened in China during the period, Zhou Liang, vice chairman of China Banking and Insurance Regulatory Commission (CBIRC), said at a parallel session at the forum. 

Compared with 10 years ago, the capital of foreign banks in China has increased by 50 percent and that of the foreign insurance companies has increased by 130 percent, which shows that international investors have full confidence in the long-term, stable and sound development of the Chinese economy, Zhou said.

The official vowed to further promote the opening-up of the financial industry with a more proactive attitude, more diversified open market landscape, higher quality environment, and a safer open system.

By making full use of the advantages of China’s colossal market, the nation will continue to optimize the financial connection mechanism under the “dual circulation” development paradigm, attract high-quality global financial resources, and serve the construction of a new development pattern, he said.

China will step up efforts to foster a market-based, legalized, and world-class business environment for all types of market players to enjoy fair competition. The nation will aim to keep improving the foreign investment management system of a pre-establishment national treatment plus a negative list, well implement the Regional Comprehensive Economic Partnership, and encourage Chinese and foreign financial institutions to leverage their respective strengths in capital, technology and others to carry out comprehensive cooperation, Zhou added.

China's capital markets have become an essential part of global asset allocation. By August 2022, more than 200 foreign institutional investors, including banks, brokerages, funds and other institutions, had entered China’s A-share market, continuously increasing their investment in the Chinese market.

As of the end of September 2022, the market capitalization of A-shares held by foreign investors reached 2.77 trillion yuan ($385 billion), accounting for 4.35 percent of the total amount. From January to September 2022, cumulative net inflows into the A-share market through the stock connect between Hong Kong and mainland markets reached more than 52 billion yuan.

Global Times