Reg­u­la­tor steadily opens fi­nan­cial sec­tor

China Daily (Latin America Weekly) - - Top News - By JIANG XUEQING jiangx­ue­[email protected] chi­

China fur­ther opened its fi­nan­cial sec­tor to for­eign in­vestors, with the bank­ing and in­sur­ance reg­u­la­tor giv­ing two more fi­nan­cial in­sti­tu­tions the nod for mar­ket ac­cess.

The China Bank­ing and In­sur­ance Reg­u­la­tory Com­mis­sion an­nounced on Sun­day it ap­proved Mu­nich­based Al­lianz SE’s ap­pli­ca­tion to be­gin set­ting up Al­lianz (China) In­sur­ance Hold­ing Com­pany Ltd, which will be­come the first for­eign-funded in­sur­ance hold­ing com­pany in China.

The reg­u­la­tor also al­lowed Chiyu Bank­ing Corp Ltd, a li­censed bank in Hong Kong, to make prepa­ra­tions to set up a branch in Shen­zhen, Guang­dong prov­ince.

Since the be­gin­ning of the year, the reg­u­la­tor has made a se­ries of open­ing-up ef­forts, in­clud­ing grant­ing prepara­tory ap­provals to Fubon Bank (China) Co Ltd’s ap­pli­ca­tion to es­tab­lish a branch in Chongqing, and al­low­ing ICBC-AXA Life As­sur­ance Co Ltd to es­tab­lish an as­set man­age­ment com­pany, and Korean Rein­sur­ance Co Ltd to set up a branch in China.

“The CBIRC will fur­ther open up China’s fi­nan­cial sec­tor in a steady man­ner in ad­di­tion to mak­ing con­tin­u­ous ef­forts to raise the level of risk pre­ven­tion and con­trol and to im­prove reg­u­la­tory ca­pa­bil­i­ties,” the bank­ing and in­sur­ance reg­u­la­tor said

The term “Chi­nese Taipei” was adopted by the In­ter­na­tional Olympic Com­mit­tee in a 1981 agree­ment and later was rec­og­nized by all other in­ter­na­tional sports fed­er­a­tions as re­fer­ring to the sports del­e­ga­tion from the is­land.

Ma said on Sun­day the fail­ure of the ref­er­en­dum showed that putting the in­ter­ests of the is­land’s ath­letes at stake is against peo­ple’s will and the at­tempts of “Tai­wan in­de­pen­dence” are doomed to fail.

Bao Chengke, deputy direc­tor of the cross-Straits in a state­ment posted on its web­site on Sun­day.

With the coun­try fur­ther ex­pand­ing ac­cess to its fi­nan­cial mar­ket, for­eign fi­nan­cial in­sti­tu­tions will en­ter a pe­riod of ac­cel­er­ated busi­ness growth in China, said Zhang Xin­grong, manag­ing direc­tor of the In­sti­tute of In­ter­na­tional Fi­nance at Bank of China Ltd.

“By bring­ing greater com­pe­ti­tion to China’s fi­nan­cial sec­tor, for­eign fi­nan­cial in­sti­tu­tions will help im­prove the ef­fi­ciency and qual­ity of fi­nan­cial ser­vices and make them more ac­ces­si­ble to Chi­nese cus­tomers, while si­mul­ta­ne­ously re­duc­ing ser­vice costs.

“The in­creased com­pe­ti­tion and co­op­er­a­tion among for­eign and do­mes­tic fi­nan­cial in­sti­tu­tions will boost the com­pet­i­tive­ness of the whole sec­tor and will also ben­e­fit do­mes­tic fi­nan­cial in­sti­tu­tions with re­gard to their global ex­pan­sion,” he said.

China is widen­ing for­eign ac­cess to its fi­nan­cial sec­tor in var­i­ous as­pects un­der es­tab­lished poli­cies.

The bank­ing and in­sur­ance reg­u­la­tor has re­moved the 20 per­cent ceil­ing on own­er­ship of a Chi­nese com­mer­cial bank or an as­set man­age­ment com­pany by a sin­gle for­eign in­vestor, and the 25 per­cent cap on to­tal for­eign own­er­ship of such com­pa­nies.

This month, the Chi­nese cen­tral bank an­nounced it had ap­proved a joint ven­ture of Amer­i­can Ex­press Co in China re­gard­ing its ap­pli­ca­tion to com­mence op­er­a­tional prepa­ra­tions for a card clear­ing in­sti­tu­tion in the coun­try.

Com­mu­ni­ca­tion and Re­gional De­vel­op­ment In­sti­tute at East China Nor­mal Univer­sity in Shang­hai, said the fail­ure of the ref­er­en­dum “is ev­i­dence of Tai­wan peo­ple’s re­fusal of ‘Tai­wan in­de­pen­dence’ and a blow to the Demo­cratic Pro­gres­sive Party”.

On the other hand, ex­changes and co­op­er­a­tion will def­i­nitely be strength­ened for those coun­ties and cities that rec­og­nize the 1992 Con­sen­sus with the main­land cities in var­i­ous as­pects like tourism, Bao added.

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