Speeding up the opening of Financial Industry and enhancing the Competitiveness of Financial vigor
Beijing, 8 Nov (Xinhua)-- China speeds up the opening up of the financial industry and strengthens the competitiveness of financial vitality
Xinhua News Agency reporter Li Yanxia
The State Council recently issued the opinions on further making good use of Foreign Capital, which clearly defines a number of measures to speed up the process of opening up the financial industry.
According to the information released by the Chinese government website, China has completely lifted the restrictions on the business scope of foreign banks, securities companies, fund management companies, and other financial institutions in China. Reduce the quantitative access conditions for foreign investors to invest in the establishment of banking and insurance institutions and the conduct of related business.
"A series of substantive measures have demonstrated China's confidence and determination to continue to open up its financial sector to the outside world, and the process of opening up of China's financial industry to the outside world will be greatly accelerated." Dong Ximiao, a special researcher at the National Finance and Development Laboratory, said.
Since China's accession to the WTO, the level of opening up of the financial industry to the outside world has gradually improved. By the end of the second quarter of this year, foreign banks had set up 41 foreign corporate institutions, 116 branches of foreign banks and 151 representative offices in China. Overseas insurance companies have set up a total of 59 foreign insurance legal persons and 131 representative offices in China.
"the participation of foreign banks and insurance companies has injected fresh blood into China's financial industry, effectively brought into play the 'catfish effect' and promoted the competitiveness of the banking and insurance industries." Liu Fushu, chief lawyer of the Banking and Insurance Regulatory Commission, said recently.
Experts believe that the current reform of China's financial sector has entered a period of deep-water areas and tackling difficulties, and the high-quality development of the financial industry needs to further enhance the richness of financial instruments and participants. This time, China has further relaxed restrictions on entry barriers, business scope, and forms of commercial existence, providing a more relaxed and independent institutional environment for the establishment and operation of foreign banks and foreign insurance institutions. It will attract more institutions to operate in China and enhance the vitality of the market.
As far as the banking industry is concerned, in addition to completely abolishing the restrictions on the business scope of foreign banks in China, the opinion proposes to abolish the total assets requirements for foreign banks to set up foreign corporate banks and branches in China. Cancel the requirement that the sole or major shareholder of a Sino-foreign joint venture bank must be a financial institution.
Experts believe that abolishing the requirement for total assets can provide more space for foreign institutions that do not reach a certain scale but have professional characteristics to set up institutions in China. The expansion of business scope will also help foreign banks to enhance their business competitiveness and profitability.
Lian Ping, chief economist of the Bank of Communications, believes that at present, China's banking industry has maintained a good state of operation on the whole, with steady growth in assets and liabilities, good profitability, and asset quality continues to be in the leading international level. We have good conditions for opening wider to the outside world. After the landing of this round of opening-up policy, the opening up of China's banking industry will reach a new and higher level.
With regard to the insurance industry, the opinion proposes to abolish the requirements for the operating years and total assets of foreign insurance brokerage companies operating insurance brokerage business in China, and allow foreign insurance groups to invest in the establishment of insurance institutions. We will continue to support administrative licensing matters such as the establishment and alteration of foreign-funded insurance companies and their branches in accordance with the principle of consistency between domestic and foreign investors.
"with the continuous entry of foreign investment, more diversified insurance products and the latest risk management concepts will be introduced, which will help promote the deep reform of the insurance market." Li Xi, assistant general manager of Dongfang Jincheng Financial Business Department, said.
It is proposed that the limit of foreign ownership of securities companies, securities investment fund management companies, futures companies and life insurance companies not exceeding 51% should be abolished in 2020. Experts said that through the increase of shareholding ratio, foreign financial institutions can further enhance their right to participate in management, which is also conducive to the further improvement and optimization of corporate governance in China's financial industry.
Dong Ximiao said: in opening up to the outside world, the financial industry should not only "run fast," but also "walk steadily." while opening up, the financial industry should grasp the rhythm and intensity and guard against relevant financial risks.
The expansion of the opening up of the financial industry has put forward higher requirements for financial supervision. Lian Ping said that the level of openness of financial markets should be commensurate with regulatory capabilities. In the face of the further expansion of opening up in the future, the ability of financial supervision needs to be improved simultaneously, including the ability to regulate the business behavior of financial institutions, the ability of early warning and prevention of financial risks, as well as the ability to deal with and resolve financial risks.