Central Bank Governor Announces Big News!11 Hot Policies of Financial Opening
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A few days ago, Yi Gang, governor of the Central Bank, announced at the Boao Forum for Asia the specific measures and timetable for further opening up the financial sector.He pointed out that in the next few months, a number of opening measures in the financial sector will be implemented, such as lifting the restrictions on the proportion of foreign shares held by banks and financial asset management companies, and treating both domestic and foreign investors equally. Foreign banks are allowed to set up branches and subsidiaries in China at the same time.
Yi Gang said that yesterday, General Secretary Xi Jinping announced that China would greatly relax market access including the financial industry.The People's Bank of China and various financial supervision departments are pressing ahead with the implementation. According to the arrangements of the Party Central Committee and the State Council, the financial sector will be greatly opened to the outside world to enhance its international competitiveness.
He said that in the next step, the central bank will follow the following three principles to promote the opening up of the financial industry: first, the principle of national treatment and negative list before admission; Second, the opening of the financial sector to the outside world will be coordinated with the reform of the exchange rate formation mechanism and the process of capital account convertibility and will be promoted jointly. Third, while opening up, attention should be paid to preventing financial risks and matching the financial supervision ability with the financial openness.
Yi Gang said that according to President Xi's spirit of "sooner rather than later, sooner rather than later", the following financial liberalization measures will be implemented in the next few months:
-To lift the restrictions on the proportion of foreign-owned shares held by banks and financial asset management companies, and to treat both domestic and foreign investors equally; Allow foreign banks to set up branches and subsidiaries in China at the same time;
-The upper limit on the proportion of foreign shares held by securities companies, fund management companies, futures companies and life insurance companies will be relaxed to 51%, and no restrictions will be imposed after three years.
-It is no longer required that at least one of the domestic shareholders of the joint venture securities company is a securities company;
-To further improve the interconnection mechanism between the stock markets of the Mainland and Hong Kong, the daily quota for interconnection will be quadrupled from May 1, i.e. the daily quota for Shanghai Stock Connect and Shenzhen Stock Connect will be adjusted from 13 billion yuan to 52 billion yuan, and the daily quota for Hong Kong Stock Connect will be adjusted from 10.5 billion yuan to 42 billion yuan.
-Allowing qualified foreign investors to operate insurance agency business and insurance assessment business in China.
-Liberalize the scope of business of foreign insurance brokerage companies, consistent with that of Chinese-funded institutions.
Yi Gang pointed out that before the end of this year, the central bank will also introduce the following measures:
-Encourage the introduction of foreign capital in banking finance fields such as trust, financial leasing, auto finance, currency brokerage, consumer finance, etc.;
-There is no upper limit on the proportion of foreign capital held by financial asset investment companies and financial management companies newly established by commercial banks;
-Expanding the business scope of foreign banks by a large margin;
-There will be no separate restrictions on the business scope of the joint venture securities company, and domestic and foreign investment will be the same.
-Completely abolish the requirement for foreign insurance companies to open representative offices for two years before their establishment.
In addition, with the joint efforts of China and Britain, preparations for Hurun Pass are progressing smoothly. The Central Bank will strive to open Hurun Pass by 2018.
He said that all the previously announced opening measures are progressing smoothly. The central bank has released the market access restrictions for bank card clearing institutions and non-bank payment institutions, relaxed the restrictions on foreign financial service companies to carry out credit rating services, and implemented national treatment for foreign investment credit reporting institutions.
Yi Gang further pointed out that at present, various departments are paying close attention to revising relevant procedures of laws and regulations and will implement them before the above-mentioned time point.In order to promote the smooth implementation of relevant work related to the opening of the financial industry, the central bank will also take necessary measures to strengthen financial supervision while expanding the opening of the financial industry.While relaxing the access to foreign capital and business scope, all kinds of enterprises under ownership should still be carefully monitored in accordance with relevant laws and regulations.By strengthening financial supervision, the central bank can effectively prevent and resolve financial risks and maintain financial stability.
With the "11 Rules" of Financial Opening up coming, can China's Financial Industry Hold up?
The 40th anniversary of the reform and opening up, the 30th anniversary of Hainan's establishment of a provincial special economic zone, and the theme of the 2018 annual meeting of the Boao Forum for Asia are bound to be closely linked to the reform and opening up.
The results did not disappoint the outside world.Chinese officials have decided to take a series of new and important measures to expand the opening up of the financial sector.
What exactly does it include?Major measures to relax the restrictions on the ratio of foreign capital stocks in the banking, securities and insurance industries will be implemented. At the same time, efforts will be stepped up to speed up the process of opening up the insurance industry. Restrictions on the establishment of foreign-funded financial institutions will be relaxed, the scope of business of foreign-funded financial institutions in China will be expanded, and the scope of cooperation between Chinese and foreign financial markets will be broadened.
Yi Gang, governor of the People's Bank of China, revealed that by June 30 this year, most of the six financial opening measures, including lifting the restrictions on the proportion of foreign shares held by banks and financial asset management companies and allowing foreign banks to set up branches and subsidiaries in China, will be implemented.
In addition, five financial liberalization measures including encouraging the introduction of foreign capital in banking finance fields such as trust, financial leasing, auto finance, money brokerage, and consumer finance will be launched before the end of this year.
At the same time, Yi Gang said that with the joint efforts of China and the UK, preparations for Hurun Pass are progressing smoothly and efforts will be made to open Hurun Pass by 2018.This "11 Rules" of Financial Openness Will Destroy China's Financial Industry?
"Catfish Effect" Favors Development
Wang Youxin, a researcher at the Institute of International Finance of the Bank of China, told reporters that allowing foreign capital to enter the domestic financial market will create a benign "catfish competition" effect and will not have a great impact on the development of domestic institutions and financial stability.