According to the 21st Century Business Herald newspaper, former finance minister Lou Jiwei said on Saturday (Mar 18) that China plans to encourage foreign capital to enter its financial markets and may allow foreign-funded financial institutions to go public in the country once “conditions are ripe”.

This move aligns with China’s effort to open up its financial industry. At the Global Asset Management Forum in Beijing, Cao Yu, vice-chairman of the China Banking and Insurance Regulatory Commission, also stated that China would respond to foreign financial institutions’ demands and promote the common development of both Chinese and foreign-funded banking and insurance entities.

The approval of fund licenses for foreign asset managers has been accelerated in recent months, as China is trying to attract foreign companies and investors to aid its economic recovery following the dismantling of its zero-Covid policy last year.

Lou also commented on the recent collapse of Silicon Valley Bank, saying that Chinese authorities are working to prevent and resolve systemic risks by improving financial supervision with the creation of a new financial regulatory body.

He added that China would continue to cooperate with other countries’ financial regulatory agencies to maintain the stability and prosperity of the global financial market.