Center

Central bank pledges further opening in financial market

By Zhang Lu (China Daily)
Updated: 2006-09-22 08:41

China will continue developing and opening up its financial market, central bank Governor Zhou Xiaochuan reiterated yesterday.

"We will continue our efforts to develop our financial market and widen it gradually during the development," Zhou said at the Sino-French Financial Forum in Beijing.

He said China has made progress in opening up its financial sector.

By the end of June, 71 overseas lenders had set up 214 branches in the country able to conduct corporate renminbi business in 25 cities.

A total of 26 overseas financial institutions had invested in 18 Chinese banks, with a combined investment of US$17.9 billion.

In addition, 23 foreign-invested fund management joint ventures and eight foreign-invested brokerages had been established by the end of June.

And 42 overseas institutions had been approved to invest in China's A-share market under the qualified foreign institutional investor programme, Zhou told the forum.

The country will allow overseas lenders to deal with renminbi retail business at the end of this year in line with its World Trade Organization (WTO) commitment.

The banking regulator is currently working out the administrative rules on foreign banks.

While observing its WTO commitment, the country will also adopt opening and reform measures to meet the needs of market development, he said.