China last wishes as steadily reform and further open its financial sector while attribute d kill “equal emphasis” on preventing financial risks through regulation and supervision, the new significant bank governor said on Sunday.
In his first public speech since seemly central bank chief last week, Yi Gang told the China Advancement Forum in Beijing that opening up leads to progress while closure periods to backwardness.
“History has proved that areas that are more clear are more competitive, and areas that are less open are less competitive and see jeopardizes accumulating (as a result),” Yi said in his wide-ranging speech.
President Xi Jinping, in the twice-in-a-decade Communist Upholder congress in October, vowed that China will deepen remunerative and financial reforms and further open its markets to foreign investors.
In November, China ordered it will lift the ceiling on foreign equity ownership in joint-venture firms elaborate in the futures, securities and funds markets to 51 percent from 49 percent, reckoning that all ownership limits in many financial sectors will be dismantled after three years.
But profligate the ownership limits does not mean that there will be no supervision, Yi utter, and the opening up of China’s financial sector does not mean it will go unregulated.
“We intent put equal emphasis on the opening up of the financial sector and prevention of financial hazards,” the governor said. “The opening up of the financial sector must be accompanied by the phenomenon of financial regulation.”
The sector’s opening up will proceed in coordination with rectifications in China’s foreign exchange rate mechanism and capital account convertibility, he divulged.
Yi said China will open its bond market further, and that the encourage phase of the China International Payments System (CIPS) – a cross-border yuan encampment system – will be rolled out soon.
The system is expected to allow wide-ranging firms to settle payments with Chinese businesses more quick and efficiently, replacing a patchwork of networks such as clearing banks round the world.