Yi Gang, China’s central bank governor, has published an article outlining plans to further open up China’s financial industry in a proactive and orderly manner, The Beijing News reported.
The first step, is to ensure the implementation of various measures about the all-around opening of the financial industry.
For example, continuing to relax restrictions on shareholding ratios of foreign-invested financial institutions, further improve the Shanghai-Hong Kong and Shenzhen-Hong Kong stock connects, and launch the Shanghai-London stock link as soon as possible.
Second, to further deepen the reform of the formation mechanism of the RMB exchange rate. To create a floating exchange rate system based on market supply and demand with reference to a basket of currencies.
Third, to promote the opening of capital projects in a sound and orderly manner, and steadily expand the capital account convertibility to create a fair, transparent and predictable business environment.
And lastly, to closely integrate the opening up with supervision and to effectively prevent and resolve financial risks.