"Some of the most powerful financial institutions on Wall Street are stepping up their deployment in China's fund management industry and other financial service industries in order to benefit China's open capital market."

  A recent report in the British "Financial Times" made this assessment at the beginning.

  Supporting his point of view are the following facts:

  BlackRock, the world's largest asset management company, was approved last month to establish a joint venture with a Chinese state-owned bank.

  A few days later, Vanguard, a rival asset management company, said it would move its regional headquarters to Shanghai.

  Citigroup became the first US bank to obtain a fund custody license in China.

  Details of JPMorgan Chase's plan to acquire all the shares of a local partner in a Chinese joint venture fund company have also surfaced.

  Corresponding to the FT report, there are also these conditions announced on the official website of the China Banking and Insurance Regulatory Commission in "Answers to Reporters" on August 22:

  Since 2018, the China Banking and Insurance Regulatory Commission has approved foreign banks and insurance companies to establish nearly 100 institutions in China, including insurance companies and wealth management companies that are wholly foreign-owned or controlled.

  In the first half of this year, many well-known and high-quality foreign bancassurance institutions from all over the world were approved for establishment.


  BlackRock Financial Management Co., Ltd. of the United States, CCB Wealth Management Co., Ltd., and Fullerton Management Co., Ltd., a subsidiary of Temasek in Singapore, jointly established a foreign-controlled BlackRock Financial Management Co., Ltd. (this is the No. One);

  The American Anda Insurance Group increased its holdings of Huatai Insurance Group shares to 46.2% and became its largest shareholder; three foreign insurance companies, namely Sino-French joint venture, Sino-Australian joint venture and Sino-British joint venture, also set up dedicated asset management companies respectively;

  Korea Reinsurance from South Korea has established a reinsurance branch in China.

  Ten days later, the official website of the China Banking and Insurance Regulatory Commission issued an announcement again, approving the Japanese Ueda Yagi Short Capital Co., Ltd. to establish a wholly-owned currency brokerage (China) company in Beijing.

  Financial giants are unanimously optimistic about the Chinese market, and take their own steps to accelerate the pace of entry. What are the reasons?

First, it is undoubtedly the huge attraction of the Chinese economy itself.

  The world’s largest and most growing middle-income group, the most complete industrial system, and the relatively traditional financial management methods of Chinese households before the development space reserved for future asset allocation (according to Goldman Sachs estimates, only 7% of China’s Household assets are invested in stocks and mutual funds, compared to 32% in the United States. Two-thirds of Chinese households’ assets are real estate, and nearly one-fifth are cash and deposits), making “managing Chinese funds globally become foreign capital The "Holy Grail" pursued by the company".

  Stewart Aldcroft, Chairman of Citi Trust Asia, a subsidiary of Citigroup, even said: “You see (China) is full of money. There are other places in the world where there is such an opportunity and can get it. Is there so much manageable funds? Frankly speaking, nowhere else."

  Although the wording is a bit exaggerated, it also reflects the weight of China in the minds of investors.

Second, my country's financial industry has been opening up significantly faster.

  Since 2018 alone, the China Banking and Insurance Regulatory Commission has successively introduced 34 opening-up measures for the banking and insurance industry.

At present, the revision of relevant laws and regulations has been basically completed, the regulatory process has been continuously improved, the approval speed has been greatly accelerated, and the level of opening up has been steadily improved. The number of new foreign-funded institutions in China has increased significantly, especially a number of specialized institutions have landed.

  As an example of BlackRock mentioned in the previous article, according to the announcement of the China Banking Regulatory Commission: BlackRock Financial Management Co., Ltd. has a capital contribution of 50.1%, CCB Financial Management Co., Ltd. has a capital contribution of 40%, and Fullerton Management Pte Ltd has a capital contribution of 50.1%. 9.9%.

  The limited company established in China by Japan’s Ueda Yagi Short Investment Co., Ltd. approved this month will become the first domestic currency brokerage company wholly-owned by foreign capital, and the sixth currency brokerage company approved after 2010. The 90-year-old chairman of the company Ueda Motohiko even said that this is "a wish for many years has been realized."

  At the just-concluded Service Trade Fair, Beijing’s Xicheng District Financial Street "Golden Open Ten" new policy was released, which clearly will fully undertake the national financial reform and opening up and support banks, securities, insurance, funds, futures, trusts, wealth management and other types of foreign investment Institutions initiate or participate in the establishment of financial institutions in Financial Street, and invest in financial institutions in the district.

  The Financial Times said: "The background of this series of new actions is that Beijing is taking measures to promote the liberalization of the country's large but tightly protected capital market."

Third, in the post-epidemic era, China's economy was the first to recover, and its resilience has increased investor confidence.

  US CNBC previously reported that industry surveys showed that China’s service industry has maintained a recovery momentum for four consecutive months in August, and companies have expanded hiring for the first time since January; a report issued by Goldman Sachs on the 11th pointed out that “China’s overall advantage in manufacturing remains "Unchanged", only labor-intensive industries will be affected; according to the latest market and economic outlook released by Vanguard, the world’s largest public equity fund management company, the US economy will shrink by 7%-9% and the Chinese economy will An increase of 1%-3%; a forecast by Deloitte shows that by 2023, the assets under management of publicly registered funds may reach 3.4 trillion US dollars; and according to consulting firm Casey Quirk, China will surpass the UK to become a global The second largest fund market.

  If the epidemic has brought a lot of risks and pressures, the Chinese market that has experienced the test of the epidemic has also increasingly shown its charm that is difficult to replace.

  Finance is the core of the modern economy. "Financial activity means economic activity; financial stability means economic stability."

  Finance and the economy complement each other and coexist and prosper, "the economy is prosperous, the finance is prosper; the economy is strong, the finance is strong".

  China's stable economy, strong resilience, broad prospects, coupled with continuously optimized services, all of these have become the fundamental driving force for the world's financial giants to break through political barriers and go to the Chinese market.

  Jamie Dimon, chairman and CEO of JPMorgan Chase, said in an interview with Bloomberg in Beijing in 2018 that JPMorgan Chase will "build a century-old foundation here." He said: "One day in the future, you will most likely see it here. A building like ours in New York."

  This day may be in the near future.

  ("Sweet Aftertaste" WeChat Official Account)