China
Financial sector continues opening up
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Source: CCTV.com | 10-18-2007 19:20
Special Report: 17th CPC National Congress |
Central Bank Governor Zhou Xiaochuan says foreign financial institutions have played a positive role in improving the competitiveness of China's financial system. But he also says the country will improve supervision of the sector to safeguard market security.
RBC, Canada's largest financial group, opens its third operation in China to tap into the country's wealth management business. RBC set up a banking branch and an insurance office in 2006.
The opening coincides with the 17th National Congress of the CPC where Hu Jintao reaffirmed the further expansion of opening up of the financial sector. A senior RBC executive feels such a message is quite encouraging.
RBC is just one of many overseas financial institutions which hope to grab a share of the lucrative mainland market. Currently, overseas banks have set up more than three hundred branches or offices in over twenty Chinese cities. Their businesses have expanded from deposit and lending to more sophisticated wealth management services.
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On the sideline of the ongoing party congress, the financial market regulator spoke positively of the role foreign financial institutions play in China.
Zhou Xiaochuan said "At the current stage, we don't see any big negative impact caused to our financial system by allowing foreign investors. On the contrary, competition between foreign and Chinese banks has helped create many positive results, including the improvement of financial services and reduction of bad loans in the banking system. I believe the positive effects obviously outweigh the potential negative impact."
However, the central banker says China will keep a close watch for any negative impacts to China's financial system.
By introducing foreign competition and advanced management experience, China has greatly improved the strength of its financial sector. While facing a more turbulent international financial market, an urgent challenge for the country is for its market regulator to improve its oversight to safeguard the financial security of the country and its citizens.
Editor:Xiong Qu
