China’s financial firms can subsist against foreign rivals: central bank

BEIJING- Chinese financial institutions are very much stable, enough to compete against foreign competition as the $40 trillion worth of financial sector was discharged, the central bank said on Thursday. Such followed after China and the United States settled the initial pact of the trade deal.

Central bank will heighten its regulation and supervision to ensure security and to negate risks in the process of the sector’s opening, the People’s Bank of China added.

China vowed to ameliorate accessibility when it comes to banking system, insurance, asset regulation, payment and fund management services, as it also swore to work within 9 months the December 2020 deadline of foreign possession on securities firm.

Chinese financial managers are to develop “various firewalls” to enforce its supervision and regulation in corporate governance and market development in line with financial opening. This will help maintain a smooth financial system, the central bank said.

According to the recently signed deal, the US government will also weigh the application from Citic Group, China Reinsurance Group, and China International Capital Corp for operating licenses, it added.