China’s financial sector will remain open
According to state media, China’s financial industry would open up, with better circumstances for foreign banks and insurance corporations entering the market.
Despite tensions with the United States, China has opted to accelerate preparations to boost its banking industry to attract more foreign investment and strengthen the economy.
According to state media, China would increase market entry rules for foreign banks and insurance companies.
According to the cabinet, the country will also enhance laws on cross-border transfers between financial organizations’ parents and subsidiaries.
According to the cabinet, China will upgrade its macroprudential framework to better manage systemic financial risks, which also stated that the yuan exchange rate will remain relatively stable.
China is one of the world’s fastest-growing major economies, with average annual growth rates of above 10% over the last three decades. By the end of 2019, the total assets of all Chinese SOEs, including those in the banking sector, were US$78.08 trillion. China has the world’s second-biggest economy by nominal GDP, and it has been the world’s largest economy since 2014.