MNI BRIEF: China To Allow Foreign Financial Firms To List

China will allow foreign financial institutions to list in the domestic equity market when “conditions are ready” given the positive outlook for further opening up of its financial markets, said Lou Jiwei, director general of the Global Asset Management Forum and China’s former finance minister.

Chinese regulators will optimise channels for foreign capital to invest in China’s market and improve the rules for cross-border connection between China-based subsidiaries and their overseas parent institutions, said Lou on Saturday during the Global Asset Management Forum 2023 annual conference in Beijing.

China will make efforts to join the Comprehensive Progressive Trans-Pacific Partnership (CPTPP) by pushing forward reforms according to international rules and standards, he said. The rapid rate hikes of some central banks may lead to a new crisis which may spill over to emerging markets, and the global economy and financial governance faces new challenges, he warned.

Lou pointed out that the collapse of the Silicon Valley Bank suggested financial markets had been hit by monetary policy changes, stressing China attaches great importance to preventing and resolving systemic risks and is upgrading supervision of the financial sector, including the creation of a new regulator.