In the face of sluggish global economic growth, sluggish demand and a complex and volatile financial situation, all sectors of society have focused on China's measures to steadily expand institutional financial opening-up, hoping that China's opening-up will inject more stability and impetus into world development. At a recent press conference of the State Council Information Office, Xiao Yuanqi, deputy director of the State Administration of Financial Supervision and Administration, said that at present, China has abolished the restriction on the proportion of foreign shares in banking and insurance institutions, and at the same time greatly reduced the quantitative entry threshold for foreign investment. The interviewed experts responded to the reporter of "China ** Daily" on this issue, saying that on the one hand, China's capital market has further taken the initiative to expand and open up, and the market is becoming more and more attractive to foreign capital, and on the other hand, China's sustained and stable economic situation and the huge development potential of the capital market are also important factors for foreign capital to actively develop their businesses in China.
The State Administration of Financial Supervision has introduced more than 50 measures to open up the financial sector to the outside world. The restrictions on the proportion of foreign shares have been lifted, including the restrictions on the proportion of shares of financial institutions in which foreign investors participate, acquire or increase their capital. At present, foreign capital can hold 100% of the equity of banking and insurance institutions, achieving full control. Xiao Yuanqi said that at present, wholly foreign-owned insurance companies, foreign-controlled wealth management companies and wholly foreign-owned currency brokerage companies, as well as wholly foreign-owned insurance asset management companies, these foreign-funded financial institutions have been approved for operation, and their operating conditions are relatively good. In addition, the relevant restrictive measures on the financial sector in the Negative List for Foreign Investment Access have now been fully cleared.
The door of China's financial industry to the outside world will certainly be opened wider and wider as always. According to the data released by the State Administration of Financial Supervision and Administration, by the end of last year, foreign-funded banks had set up a total of 41 corporate banks, 116 branches of foreign, Hong Kong, Macao and Taiwan banks and 132 representative offices in China, and 888 commercial institutions, with total assets reaching 386 trillion yuan; Overseas insurance institutions have set up 67 operating institutions and 70 representative offices in China, and the total assets of foreign-funded insurance companies have reached 24 trillion yuan, and its market share in the domestic insurance industry has reached 10%.
Foreign-funded financial institutions are deeply involved in China's economic development and the operation of the financial market, and have become a very important force in China's financial industry. Xiao Yuanqi commented on this.
The reporter noted that the 2023 ** Financial Work Conference held last year put forward the "Financial Power Strategy" for the first time, clarifying the goal of promoting the development of China's financial industry and building a financial power, and emphasizing that finance is the blood of the national economy and an important part of the country's core competitiveness. In fact, high-quality international financial institutions can introduce advanced investment concepts and mature management techniques into the Chinese market. In this regard, Dong Zhongyun, chief economist of AVIC, said that from the perspective of the long-term development of domestic and foreign investment competition in China's financial sector, the participation of foreign capital is conducive to improving the market mechanism and enhancing market maturity. At the same time, the competitive pressure and the "catfish effect" brought by it are expected to force Chinese-funded relevant institutions to become bigger and stronger, enhance their core competitiveness, and promote healthy competition in the industry.
In addition, for insurance institutions that are of general concern in the industry, from the announcement of 15 opening measures for the banking and insurance industry in 2018 to the two rounds of 19 opening measures issued by the former China Banking and Insurance Regulatory Commission in 2019, all of which have brought waves of benefits to foreign-funded insurance institutions. According to statistics, in the past three years, a number of foreign-funded insurance companies such as AVIC Groupama Property & Casualty Insurance, Swiss Re Beijing Branch, Aiheyi, Hannover Reinsurance Shanghai Branch, Tongfang Global Life, Allianz Insurance Asset Management, Teckwah Angel Life Insurance, HSBC Life, Swiss Re Corporate Advisors, Sino-Dutch Life Insurance and many other foreign-funded insurance companies have increased their registered capital to varying degrees. In January this year, the Italian insurance giant Generali announced on its official website that it would acquire 51% of the equity of Zhongyi Property Insurance for more than 700 million yuan, and after the transaction is completed, Generali will become the 100% controlling shareholder of Zhongyi Property Insurance.
economic prosperity and financial prosperity; The economy is strong, the finance is strong. China's economy has good fundamentals, full potential and plenty of room for maneuver, laying a solid foundation for the sustained and healthy development of the financial industry. **The Financial Work Conference clearly pointed out that efforts should be made to promote high-level financial opening-up, steadily expand the institutional opening of the financial sector, improve cross-border investment and financing facilitation, and attract more foreign-funded financial institutions and long-term capital to do business in China.
The in-depth participation of foreign financial institutions will not only promote the high-quality development of China's financial industry, but also contribute to the stability and innovation of the domestic financial market. They have international experience and expertise in the fields of wealth management and asset management, and are able to explore new cooperation models and development paths with Chinese financial institutions.
We will further benchmark the relevant rules of the financial sector in international high-standard economic and trade agreements, continue to firmly promote the high-level opening up of the financial sector, adhere to the principles of marketization, rule of law and internationalization on the basis of implementing the pre-establishment national treatment plus negative list management system, and welcome all kinds of foreign-funded institutions and long-term capital to do business in China. Xiao Yuanqi said that foreign financial institutions are encouraged to carry out extensive cooperation with their Chinese counterparts in equity management, product development, including technology and talent exchange and training.
We also welcome foreign institutions with expertise in wealth management, asset management, asset revitalization and disposal, climate change response, green finance, sustainable management, etc., to carry out different forms of all-round cooperation in China. The State Administration of Financial Supervision also supports the in-depth participation of foreign financial institutions in the development of international financial centers in Shanghai and Hong Kong. Xiao Yuanqi said.
*: China ** News Author: Zhang Weilun.