BEIJING, May 28 (Xinhua) -- Officials of China’s financial regulating institutions recently voiced transition towards pre-entry national treatment plus negative list management system for the country’s financial sector to realize higher opening up at systematic and institutional level.
In a written speech for the Tsinghua PBCSF Global Finance Forum held May 25-26 in Beijing, Guo Shuqing, chairman with the China Banking and Insurance Regulatory Commission (CBIRC), said that a slew of measures for opening up the banking and insurance industry rolled out in 2018 as well as the 12 new measures announced this month are all put in place and progressing smoothly.
Measures working on shareholding ratio, new institution establishment, business scope expansion, financial market opening up, bank card clearing, non-bank payment, credit rating, among others, have achieved fruitful results and won applauds both home and abroad, Chen Yulu, vice governor of the People’s Bank of China, said during the forum themed on financial supply-side reform and opening-up.
China's financial sector still has great potential for opening further with foreign investment only accounting for two percent of China’s A-share market and 2.9 percent of China’s bond market. Meanwhile, foreign-funded banks account for only 1.6 percent of all commercial banks, and foreign-invested insurance companies account for only 5.8 percent, according to Guo Shuqing, noting that China welcomes foreign-invested institutions with good market reputation and credit history to bring their expertise in risk management, credit rating, consumer finance, pension insurance and health insurance, to enrich, innovate and vitalize China’s market.
However, the financial sector should warn risks along such journey, being especially vigilant about big flows of overseas funds and the "hot money" speculation, as well as resolutely avoid excessive bubbles in real estate and financial assets, Guo noted.
For the financial sector, it is necessary to continuously deepen the structural reform of the financial supply side, promote the optimization of financing structure and financial institution system, market system and product system, and further improve the adaptability and flexibility of financial supplies for the real economy, Guo noted in an interview with Xinhua.
At the same time, China will continue to rectify financial market chaos, orderly resolve the shadow banking risks, strengthen the real identification and effective disposal of non-performing assets, dispose of high-risk institutions, and crack down on illegal financial activities. More emphasis will be placed on expanding effective demand through supply-side structural reforms, preventing risks in promoting high-quality development, and ensuring that the economy operates within a reasonable range. Efforts will be also made to further strengthen policy coordination and prevent abnormal fluctuations and resonance in financial markets, Guo said. (Edited by Niu Huizhe, niuhuizhe@xinhua.org)
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