CIIE furthers China’s opening-up in financial sector
The China International Import Expo (CIIE) generates greater demand for financial services as it facilitates transactions between exhibitors and buyers. The higher level of demand is thought by many observers an indication that China is increasing its drive to liberalize its financial sector.
International financial institutions have made specific preparations ahead of the expo. The Standard Chartered, the British multinational banking and financial services company, introduced an “Import trade partnership program” to support small and medium-sized enterprises attending the CIIE.
The Chinese division of the British Bank initiated its import partnership program ahead of the exhibition, aiming to help professional trading companies raise funds needed for importing goods.
While the rival HSBC set up a special working group for the exhibition to coordinate the inter-divisional cooperation within the bank during the six-day event. The bank outlines its global network, universal financial services, and innovation to attract customers.
“The impact of CIIE will continue. The CIIE will further China's opening-up in the financial industry,” said Xi Junyang, director of the department of international finance at the Shanghai University of Finance and Economics.
China has rolled out a slew of measures to ease restrictions on foreign investment.
China's state planner further cut the investment "negative list" in June and lifted curbs on sectors including banking, automotive and agriculture, pledging to allow 51 percent foreign ownership of brokerages and to lift that cap entirely by 2021.
The government also plans on removing the investment cap of 25 percent in Chinese commercial banks by multiple overseas financial institutions.
In addition, an online filing system will be introduced to regulate foreign investment in China. Unified market access criteria will be applied to both Chinese and foreign investment firms in areas outside the negative list.
Moreover, the government promises to offer land and logistical support to certain foreign investment projects to help cut costs.