Chinese vice premier encourages foreign companies to deepen cooperation with China Magic Post

Chinese vice premier encourages foreign companies to deepen cooperation with China

 Magic Post

BEIJING: Chinese Vice Premier He Lifeng recently met with executives of global financial giants such as BlackRock, Goldman Sachs and Citigroup.

During the meetings, he said China welcomes more foreign financial institutions and long-term capital to invest and do business in China, thereby sharing China’s development opportunities.

China is further deepening the reform of its financial system and gradually expanding the institutional opening-up of the financial sector, thereby providing greater convenience to foreign companies operating in the country, said the vice premier.

Executives of these financial companies expressed optimism about China’s economic and financial prospects, emphasizing their desire to deepen their presence in the Chinese market and strengthen economic and trade cooperation.

These recent meetings send a clear signal that encourages long-term global capital to increase their stakes in China and has the effect of stabilizing market expectations, according to CMG financial commentator Liu Ge.

Meanwhile, Chen Hongbin, a researcher at Tsinghua University, highlighted China’s appeal to growth and value investors. As a global innovation leader and the world’s largest manufacturing country with the most comprehensive industrial system, China presents unparalleled opportunities for financial institutions, Chen said.

Efforts to stabilize the yuan exchange rate and improve foreign exchange reserve management were also prioritized.

Since the start of the year, the country’s regulators have significantly tightened countercyclical monetary policies, said Zeng Gang, director of the Shanghai Financial and Development Laboratory.

Zeng said these policies have expanded tools for macroeconomic and financial market regulation while supporting the sustainable development of capital markets.

Tian Lihui from Nankai University pointed out that new tools, such as swap facilities and repurchase loans, have positively influenced market sentiment and improved social expectations.

The Chinese bond market, now the second largest in the world, continues to attract global capital. At the end of October 2024, foreign institutions held 4.25 trillion yuan ($585 billion) of bonds, with entry facilitated through direct investment, Bond Connect, or both.

Meanwhile, Wang Lei, deputy director of the State Administration of Foreign Exchange, highlighted ongoing efforts to support the issuance of renminbi bonds by foreign entities and to streamline foreign exchange management rules, thereby strengthening the attractiveness of renminbi-denominated assets for global investors.

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