Foreign Banks' China Success Will Strengthen Nation's Financial System, CIC Executive Says
(Yicai Global) May 21 -- If foreign financial institutions come to China and succeed, the Asian nation will have a stronger financial system and a more powerful capital market to serve the real economy and promote economic transformation, Qi Bin, executive vice president of China Investment Corp., said at a global finance forum on Sunday.>
"Policies to promote financial openness need to be implemented sincerely," said Qi, who also a member of the academic advory committee to the PBC School of Finance at Tsinghua University. "We hope the world's top-tier financial institutions will come to China and succeed.
China and the United States sued a joint statement on economic and trade consultations yesterday, in which the pair agreed to take measures to reduce the US goods trade deficit with China.
China will increase goods and service purchases from the US to meet growing consumer demand at home and promote quality economic development, which will also aid American growth and employment, the statement added.
Qi believes th to be good news. It a sign that the two countries have begun a new era featuring competition and cooperation, he said, adding competition will bring more opportunities for cooperation as the world's largest economies complement each other well.
He also feels that cross-border investment will help open up China's financial services sector, allowing institutions from each nation to invest in the other without the need to obtain a permit.
Qi gave an example using a China-US manufacturing cooperation fund that China Investment set up, which Goldman Sachs Group Inc. and other foreign banks have joined.
"China's securities brokers and banks can make bridge loans using the fund we set up," he said. "Cross-border investment can alleviate trade frictions and help the financial services industry further open up."
Editor: James Boynton