The China Banking Regulatory Commission said it will continue to facilitate the opening of the domestic banking industry and support foreign capital as it engages in China’s financial market more extensively, according to an announcement posted on its official website on Wednesday.
As for the further opening up of the financial industry, the policy direction will focus on relaxing the limitations on how foreign banks will exist in China.
The commission is also considering expanding the business space for foreign banks, such as cancelling the waiting period to operate the RMB business, supporting branches to engage in government bond-related businesses and relaxing requirements to accept RMB retail deposits.
Previously, the State Council had agreed to remove the cap on the proportion of foreign-owned shares in Chinese banks and financial asset management companies.
Financial domestic markets used by governments to funnel peoples’ savings, more often than not, end up covering up inefficiencies and dead rats. If not properly controlled, good money ends up going into unsustainable projects. Its a fact borne from other countries’ experience.
The Westerners have been exerting China to open its Financial industry for investment. When it is finally opened, they say that they smell a rat there.