Expanding financial opening makes the Chinese market more attractive

  In recent years, the opening up of China's financial industry has accelerated significantly.

Although the international situation is changing and the impact of the new crown pneumonia epidemic has triggered turmoil in the international financial market, China has fulfilled its commitments in accordance with the established rhythm and continued to expand financial opening with a solid attitude and determination, and achieved remarkable results.

Economists at home and abroad said in interviews with reporters that China has been orderly expanding the high-level opening up of the financial industry, vigorously attracting international capital, providing solid support for the high-quality development of China's economy, and bringing more opportunities for world development.

Measures are effective, and the financial industry's opening to the outside world has "accelerated"

  Another first order!

In December last year, Shanghai, through qualified foreign institutional investors, renminbi qualified foreign institutional investors, and Chinese foreign investors subscribed for wholly foreign-owned private equity securities investment fund managers' fund products smoothly.

In the same month, Goldman Sachs Group officially launched the procedure to acquire 100% equity of the joint venture company Goldman Sachs Gaohua, which will become China's first wholly foreign-owned securities company.

  From the complete removal of the investment quota restrictions for qualified foreign institutional investors and RMB qualified foreign institutional investors, to relaxing the restrictions on the proportion of foreign and domestic currency remittances by foreign institutional investors, to granting foreign institutions the qualifications of Class A lead underwriters for non-financial debt financing instruments. Remove restrictions on the proportion of foreign shares held in the fields of banking, securities, fund management, futures, and personal insurance, remove access restrictions in the fields of corporate credit rating, credit rating, payment and settlement, and grant national treatment to foreign investors... Major financial opening measures have been effective, and the financial industry has opened up to the outside world with "acceleration".

  "China has simplified and accelerated the process for foreign investors to enter the Chinese market, and removed restrictions on the proportion of foreign ownership, adding vitality to the open Chinese financial system." The British "Financial Times" report quoted JPMorgan Chase CEO Jamie Dimon as saying He pointed out that "China is a very important market for many of the group's customers."

  Following the Bloomberg Barclays Global Aggregate Index and the JPMorgan Chase Global Emerging Markets Government Bond Index, the FTSE Russell Company, one of the world’s three major bond index suppliers, announced in September last year that from October 2021, China’s government bonds will be included in the rich Time World Treasury Index.

“This is an important aspect of China’s financial market opening.” Liu Ligang, managing director of Citibank’s research department and chief China economist, believes that “the inclusion of the global capital market index will make foreign institutional investors more willing to allocate RMB assets and help Push China's capital market to further open up."

  "Whether it is a large brokerage firm like Goldman Sachs or a small and medium-sized enterprise, they are actively seizing the opportunity of China's financial opening." Bernard Dewitt, chairman of the Belgian-Belgium-China Economic and Trade Committee, said that China's financial market has continued to open up to the outside world, providing foreign investment in China. The market has created favorable conditions and increased investor confidence. "An open China has become an important driving force for win-win international financial cooperation."

"Magnetism" has increased, and Chinese government bonds have become a "safe haven" for global investment and financial management

  In May last year, Fitch Ratings became the second foreign credit rating agency to enter the Chinese market after S&P Global. In early December last year, Deutsche Bank (China) Co., Ltd. obtained the China Fund Custody License issued by the China Securities Regulatory Commission and became Following Standard Chartered Bank and Citibank, it is the third wholly foreign-owned financial institution to obtain a fund custody license.

  HSBC's survey of nearly 1,000 top global institutional investors and large companies shows that 62% of respondents plan to increase their investment portfolio allocated to China by an average of 25% in the next 12 months; among equity investors, there are 71% want to increase investment in China.

Hayden Briscoe, head of the Asia Pacific Fixed Income Department of UBS Asset Management, said: "The rate of global capital flowing into China is accelerating. More and more customers are communicating with us, and many customers are beginning to allocate Chinese assets for the first time."

  "Global investment funds are pouring into China. Last year, international financial giants continued to expand their business in China. An important reason is their confidence in the medium and long-term development of China's economy and financial market." said Hasegawa Katsuyuki, chief economist of the Mizuho Research Institute in Japan.

  In the past two years, the “magnetism” of renminbi assets has increased, and foreign capital has continued to increase the amount of Chinese bonds.

The latest data shows that as of the end of November last year, the scale of Chinese government bonds held by foreign institutions has exceeded 1.79 trillion yuan, a year-on-year increase of 39.15%.

In November last year, Bond Connect also ushered in the first South African investor, and its service scope expanded to 34 countries and regions.

Bloomberg commented that China’s national debt became a “safe haven” for global investment and financial management last year.

  According to Alicia García Herrero, a senior researcher at the Bruegel Institute, an EU think-tank, the huge market size, rapid economic recovery, and continuous expansion of opening up enable Chinese financial markets to invest globally even in the face of the challenge of the epidemic. The person stays attractive.

  Paul Kewell, head of the global insurance brokerage firm Willis Towers Watson Asia Investment Portfolio Advisory Group, said that investors should allocate 20% of their investment portfolio to China in the next 10 years, because “China’s operating efficiency is the same as that of other regions in the world. Incomparable", "this will enhance the resilience and robustness of the global investment portfolio."

Introduce competition, Chinese financial institutions strive to become bigger and stronger

  Expanding financial opening will inject new vitality into China's financial industry, help improve the overall competitiveness of China's financial industry, achieve a higher level, higher level and healthier development, and provide great momentum for building a new development pattern.

  "The entry of foreign financial institutions will promote China's continuous integration into the global financial market." DeWitt believes that foreign financial institutions bring advanced technology and management experience to China's capital market, which will help promote China's domestic financial institutions to improve and expand. Be stronger.

  Zhang Ming, deputy director of the Institute of Finance of the Chinese Academy of Social Sciences, said that in the fields of deposits and loans, traditional Chinese financial institutions have long-term business scale advantages and branch advantages, but in the intermediary business of banks, especially global asset allocation and derivatives design There are still shortcomings in the field.

"Foreign investment in competition can further urge Chinese financial institutions to increase reform and development, optimize investor structure, and promote the healthy development of the capital market."

  Liu Ligang said frankly that financial opening will inevitably bring more competition, which requires domestic financial institutions to catch up in financial products, services, and financial technology, and financial supervision should also improve their capabilities and standards.

"The entry of overseas brokers and investment banks into the Chinese market will bring some pains to the domestic brokerage industry in the short term, but in the long run, participating in international financial market competition will enhance the overall strength and service capabilities of the domestic financial industry and better serve the development of the national economy. need."

  "China is an open market, and the capital market is at the climax of open development. In the future, it will continue to grow and foreign companies will get more and more opportunities." Fraser, an independent analyst researching the development of China's capital market Howe is confident and looking forward to the Chinese market.

  (Our newspaper, Beijing, Brussels, and Tokyo, January 8th)

  Our reporter Yu Yichun Fang Yingxin Liu Junguo