China Financial Opening-Up: Foreign investors moved quickly to apply for Chinese joint ventures

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The wider access in Shanghai is a part of China's opening up drive. China has relaxed market access in a wide range of financial services. And foreign investors are not wasting time to have a bigger slice of the market with more control.

Foreign investors moved quickly after China's securities watchdog allowed majority ownership for them in joint ventures. On May the second, UBS submitted a quest to increase its stake in a joint-venture to maximum 51 percent. Several days later, Nomura Securities and J.P. Morgan applied to set up joint ventures. Both firms wanted to hold a 51 percent stake.

TOSHIYASU LIYAMA, HEAD OF CHINA NOMURA SECURITIES "Capital flow, investment and business opportunities are important to us. I am confident that Nomura can successfully enter into Chinese market."

Apart from securities, China has also opened up banking, insurance and payment among other financial segments to foreign investors. Proposals to set up joint ventures in these areas are being discussed between foreign financial institutions and their Chinese counterparts. Some of these proposals have already been submitted for approval.

HUANG YIPING, CHAIRMAN CF 40 ACADEMIC COMMITTEE "We have learned from past experiences that a broad opening-up is an important condition to sustain China's economic growth. And financial opening-up is an indispensable part."

Competition in the domestic financial sector will heat up as more and more foreign investors access into the market. In the meanwhile, increasing competition will improve supplies and better serve China's real economy.