China to further expand financial sector opening-up

2019-04-14
Xinhua

WASHINGTON — China will further expand the opening-up of its financial sector “in a systemic manner at the institutional level,” the deputy governor of China’s central bank said in a statement released on April 13.

Chen Yulu, deputy governor of the People’s Bank of China, said Beijing is working toward treating Chinese and foreign-funded financial institutions “equally in a way that is more transparent and consistent with best international practices”.

Chen made the statement at the ministerial meeting of the 39th meeting of the International Monetary and Financial Committee (IMFC), the policy-setting body of the International Monetary Fund (IMF).

“The Chinese government continues to implement the high-level opening-up strategy, through measures such as tariff cuts,” the deputy governor said. “The market access for the agricultural, manufacturing, and service sectors has been relaxed and the negative list for foreign access has been shortened substantially.”

In addition to enhancing the two-pillar framework of monetary and macro-prudential policies, Chen said China will accelerate the development of its financial market infrastructures, and the resolution mechanism for distressed financial institutions will be improved.

With respect to policies related to the exchange rate of China’s currency, the RMB, Chen said “China will continue to improve the exchange rate mechanism and keep the RMB exchange rate in line with fundamentals at an adaptive equilibrium level.”

China, Chen said, will continue to improve its business environment, promote opening-up at a high level and across the board, and further expand sectors for opening-up, so as to deepen reform in a comprehensive manner.

Highlighting the passage of the Foreign Investment Law at the National People’s Congress - China’s legislature - in March, the deputy central bank chief said that subsequently, relevant laws and regulations will be revised in line with the principle of competitive neutrality.

“Policies and measures that hamper the growth of private businesses or fail to treat domestic and foreign investors as equals will be overhauled,” he said.

Noting that a fair competition review system will be implemented across all levels of government this year, Chen said such a system will review all business-related policies, rules and measures, “and mechanisms for filing complaints and third-party evaluations will be established to forestall and redress any action that may preclude or constrain competition.”

The IMFC meeting is part of the ongoing Spring Meetings 2019, which is co-hosted by the IMF and the World Bank in Washington.