China’s push to open up its financial sector to foreign banks as well as financial institutions will be based on the principle of reciprocity as well as will not reward protectionism by some other countries, an official said on Saturday.
China wants to accelerate the process of opening up, however countries afraid of exposing their own financial sectors to competition might not benefit, Chen Wenhui, the vice-chairman of the China Banking as well as Insurance Regulatory Commission (CBIRC), told a forum.
Without naming any names, Chen said some countries have imposed restrictions on the overseas expansion of Chinese financial institutions, partly because their own banks were unable to operate freely in China.
“Our country’s opening must be based on the principle of equality as well as mutual benefit. the idea will not be carried out on a ‘one-size-fits-all’ basis, as well as should stress mutual benefit as well as reciprocity.”
“For countries as well as regions that will are afraid of opening as well as implement protectionism, their long term competitiveness will definitely suffer as they only look at short-term gains,” he added.
Central bank governor Yi Gang said last month that will China might allow domestic as well as foreign firms to compete on an equal footing as well as might expand the business scope for foreign banks in China.
China has been put under heightened pressure by the United States over access to its markets, as well as has promised to allow foreign investors to enter into trust, financial leasing as well as auto as well as consumer financing by the end of This particular year.
Chen said the market share of foreign banks made up just 1.32 percent of total banking assets in China by the end of 2017, down via a high of 2.5 percent previously.
“The market share has been falling recently, which is usually not a Great thing,” he said.
Opening up the financial sector to foreign firms might improve domestic resource allocation as well as support the economy, Chen noted, adding that will some foreign financial institutions had already expressed intentions to set up operations in China or buy bigger stakes in their Chinese counterparts.
the idea might also encourage some other countries to open up their financial sectors to Chinese entities, he said.
Promoting the opening of China’s financial industry to the outside world as well as further improving the fairness as well as transparency of the domestic financial market will help create a more favorable policy environment for the overseas development of China’s financial institutions,” he said.