24 September 2018

China to open financial services sector, Zhou says

China will lower the entry barriers for foreign financial services providers and ensure a level playing field for them, People’s Bank of China (PBoC) governor Zhou Xiaochuan {周小川} said Tuesday.

The move is aimed at fostering market competition in order to improve the quality of domestic players, Zhou said.    

A trial program will be implemented in the Shanghai free trade zone, he said.

In addition, the PBoC will push forward reform of the exchange rate mechanism, broaden the foreign exchange market and allow an orderly increase in the trading band of the renminbi.

That means increasingly allowing supply and demand to dictate the renminbi exchange rate and reducing state interference in the forex market, he said. 

The PBoC will further liberalize interest rates, especially deposit rates, and establish a price-setting and reporting system for that purpose.  

In the next phase, it will cut administrative approval procedures for cross-border capital transactions while tightening liquidity oversight.

Also, the PBoC will publish a list of restrictions for foreign investors, a departure from the present practice of listing what they are allowed to do, he said.

– Contact HKEJ at [email protected]



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