Foreign funded institutions are rushing to seize opportunities. China's high-level financial opening up to the outside world is steadily advancing
2024-07-04
At the end of June, Mizuho Financial Group of Japan announced that the China Securities Regulatory Commission had accepted its application to establish a securities company in China. If approved, Mizuho Securities, a subsidiary of Mizuho Financial Group, would establish a fully funded subsidiary. This is the latest example of foreign institutions rushing to enter the Chinese market. Industry insiders say that China will continue to steadily promote high-level financial opening up to the outside world, continuously optimize the business environment, and provide broader markets and development opportunities for foreign financial institutions and global investors. The increasingly open Chinese financial market will also attract more foreign investment to enter. In January, actively investing and expanding its business, Lianbo Fund, a foreign-owned enterprise under Lianbo Group, obtained the Securities and Futures Business License issued by the China Securities Regulatory Commission; In March, Standard Chartered Securities, the first newly established foreign-owned securities firm, officially announced its business expansion; In April, the China Securities Regulatory Commission approved the establishment of Faba Securities (China) Co., Ltd., increasing the number of wholly foreign-owned securities firms in China to four... Since the beginning of this year, multiple foreign institutions have applied to establish new securities firms and expand their business in China. Zhao Xijun, Co Dean of the China Capital Market Research Institute at Renmin University of China, believes that foreign institutions actively invest and expand in China, reflecting the strong attractiveness and broad prospects of the Chinese market. According to the recent market outlook reports for the second half of 2024 released by multiple international financial institutions, foreign institutions generally hold an optimistic attitude towards the prospects of the Chinese economy. The International Monetary Fund (IMF) recently released its latest report, raising China's economic growth expectations for 2024 and 2025 to 5.0% and 4.5%, respectively. UBS Asia Economic Research Director Wang Tao predicts that China's GDP growth rate in the second quarter will be around 5.3% year-on-year, and the annual GDP growth rate is expected to reach 4.9%. Shen Liang, General Manager of Allianz Fund, believes that the high growth rate and transformation trend of the Chinese economy provide more development opportunities for foreign institutions. Behind the continuous efforts of the open policy and the increased layout of foreign institutions in the Chinese market, there is a combination of policy "punches" that continue to exert force. In January, the People's Bank of China and the Hong Kong Monetary Authority decided to launch six policy measures, covering financial market connectivity, cross-border fund facilitation, and deepening financial cooperation; In March, the China Securities Regulatory Commission issued the "Opinions on Strengthening the Supervision of Securities Companies and Public Funds and Accelerating the Construction of First Class Investment Banks and Investment Institutions (Trial)", supporting qualified foreign institutions to expand their business in China; In March, the General Office of the State Council issued the Action Plan for Solidly Promoting High Level Opening up to the Outside World and Strengthening Attraction and Utilization of Foreign Investment, proposing to expand the access of foreign financial institutions in the banking and insurance field, and expand the scope of foreign financial institutions participating in the domestic bond market business. From a series of policy signals recently released by relevant departments, it can be seen that China will steadily expand institutional opening up in the financial sector and further promote high-level financial opening up to the outside world. "The People's Bank of China will adhere to the high-level opening-up of finance to the outside world, improve the pre admission national treatment plus negative list management model, enhance the level of cross-border trade and investment in financial services, and deeply participate in global financial governance." Tao Ling, Vice President of the People's Bank of China, recently stated. Li Yunze, Director of the State Administration for Financial Supervision and Administration, stated that he will adhere to the equal emphasis on "bringing in" and "going out", continue to create a first-class business environment, and resolutely expand the high-level opening up of the financial industry to the outside world. Steadily expanding institutional openness, researching and relaxing the scope of foreign shareholders for non bank financial institutions, encouraging qualified foreign institutions to participate in various business pilot projects, and supporting foreign institutions in China to deeply cultivate China and operate steadily. "A series of measures to support high-level financial opening-up will enable foreign financial institutions to more conveniently enter the Chinese market and share the dividends of China's economic growth." Zhou Maohua, a macro researcher at the Financial Market Department of Everbright Bank, said. In the view of Dong Ximiao, Chief Researcher of Zhaolian, the increasingly open Chinese financial market will attract more foreign investment, injecting new vitality and adding new momentum to accelerate the construction of a new development pattern and serve high-quality development. (Lai Xin She)
Edit：Lubaikang Responsible editor：Chenze
Source：cs.com.cn
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