China's Financial Sector Opens Its Door Wider to Foreign Investors

…China's determination for greater openness, the past two years have witnessed China's efforts in accelerating its opening-up initiative in its financial sector to foreign investors…

China has the world's largest banking market, second largest insurance market and third largest bond market, but historically it has been very cautious about opening up its financial sector to foreign investors because of the financial sector's strategic importance to its economic security and stability among other things.  This approach has changed given the ever-evolving international and domestic situation.  Following President Xi's keynote speech at the Boao Forum in April 2018 on China's determination for greater openness, the past two years have witnessed China's efforts in accelerating its opening-up initiative in its financial sector to foreign investors, not only in response to the global trade and geopolitical frictions, but also echoing China's further market-driven reform initiative.  The Chinese government has committed that, by end of 2020, all foreign investment access restrictions in the financial sector will be lifted and foreign investors will compete on a more level-playing field with their China counterparts.  This heralds a golden era for foreign financial institutions and investors to share the benefits of continuous growth of the world's second largest economy.