Financial regulators eye high-quality development with major policy measures

Home>>

By GT staff reporters (Global Times) 08:25, June 20, 2024

Chinese financial regulators, including the China Securities Regulatory Commission (CSRC), People's Bank of China (PBC), and the National Financial Regulatory Administration (NFRA), announced significant policy measures and reforms for China's capital market and highlighted China's efforts in promoting high-quality opening-up in the financial sector at the 2024 Lujiazui Forum in Shanghai which started on Wednesday.

On the same day the International Monetary Fund (IMF) has announced the opening of a new IMF regional center in Shanghai. Recently the CSRC has approved BNP Paribas and HSBC to expand financial business scope in China, providing a vivid testimony of further opening-up of China's financial industry.

Foreign institutions attending the event told the Global Times that the forum showcased China's ongoing efforts to further open up its financial markets and strengthen its position as a key driver of global economic prosperity which will enhance its appeal as an investment destination.

Signal for opening-up

Under the theme of ''Promoting World Economic Growth With High-Quality Financial Development,'' the two-day forum has brought senior officials of financial regulatory departments, financial industry, and renowned experts and scholars from home and abroad to discuss how to promote high-quality financial development through reform and innovation in the financial sector, address the problems faced by the current global economy through high-quality financial development, and thereby promote sustained growth of the world economy.

At the opening ceremony, the IMF announced the opening of a new IMF regional center in Shanghai to strengthen the its engagement and partnership in the Asia-Pacific region.

"We welcome the establishment of the IMF regional center in Shanghai. We believe the Shanghai regional center will deepen cooperation between the IMF and China, enhance macroeconomic policy exchange and coordination among the Asia Pacific countries, and promote regional and global financial stability," PBC Governor Pan Gongsheng said.

Regarding the Shanghai center, the IMF Managing Director Kristalina Georgieva said: "The center will further strengthen the IMF's engagement in the dynamic Asia Pacific region, deepen our understanding of perspectives from member countries, and foster international economic cooperation."

The CSRC recently approved BNP Paribas (China) to act as a custodian for securities investment funds, and also approved HSBC Qianhai Securities to engage in margin trading. During the forum, Chinese financial authorities underscored efforts to further open up China's financial market and welcome foreign investments to operate in the country.

Wu Qing, head of the CSRC said it will support Shanghai in building a world-class international financial center, promote high-quality development of stock and bond markets, enhance futures and derivatives markets, cultivate top-tier investment banks and institutions, support more foreign financial institutions to operate in Shanghai and attract more medium and long-term capital.

Zhu Hexin, PBC deputy governor and head of the State Administration of Foreign Exchange, said at the forum that China will further facilitate overseas investors' participation in domestic securities investment, cross-border financing for technology companies and support multinational companies in Shanghai to establish global or regional fund management centers.

The Chinese financial authorities also announced major reforms of China's capital market.

The CSRC has unveiled eight new reforms measures for China's STAR market aimed at supporting technological innovation and the development of new quality productive forces. The announcement was made on the five-year anniversary of the launch of the Nasdaq-style sci-tech innovation board in Shanghai, a milestone in the country's capital market reform.

Pan from the PBC said at the forum that the central bank will continue to adhere to a supportive monetary policy stance, consolidate the positive trend of economic recovery, and create a favorable monetary and financial environment for economic and social development.

Li Yunze, director of the NFRA, said the agency will be releasing guidelines in the near future to support Shanghai to build itself into a global reinsurance center.

The signals from the forum clearly demonstrate that China's financial reform and opening-up are making significant progress, with regulatory authorities actively driving this process forward. This will boost the confidence of both domestic and foreign markets and investors in the growth of China's financial sector, Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Wednesday.

These proactive measures will elevate China's financial status, fostering closer and mutually beneficial connections between the global financial system and the Chinese market, and not only contribute to the enhancement of China's financial system, but also promote the healthy development of the global financial and monetary systems, professor Xi said.