By Zhang Chenghui, Research Institute of Finance, DRC

Research Report, No.98, 2018 (Total 5373) 2018-6-13

Abstract: On April 10, 2018, President Xi Jinping unveiled at the Boao Forum for Asia four major measures on further opening up to the outside world including to further relax restrictions on market access, to create a more attractive investment environment, to enforce protection of intellectual property rights, and to proactively increase import. This marks a crucial decision on opening-up since China’s entry into the WTO. Following President Xi’s instructions, the People’s Bank of China, China Banking and Insurance Regulatory Commission, and China Securities Regulatory Commission have respectively announced specific measures and implementation rules for financial service opening-up. This paper analyzes the possible impacts resulting from the 12 new measures to open financial services to the outside world, the pros and cons of the Chinese-invested and foreign-invested financial institutions, and the challenges and opportunities brought about by the new round of opening-up to China’s financial sector. It is held that after the adoption of the relevant measures to further open up the financial sector to the outside world, the foreign-invested institutions will not pose a major impact to the Chinese-invested institutions in the short term, but will add up competitive pressure for the medium and long term, which is not to be taken lightly. Chinese-invested financial institutions must accelerate transformation and upgrading and enhance competitiveness during the window period in the next few years, so as to grasp opportunities and cope with challenges in a positive manner.

Key words: finance, opening up to the outside world, impact