Politics
08:13, 04-Jul-2017
China, Russia to intensify financial cooperation
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Ties in the financial sector between China and Russia have been tightening for years, with more and more Russian companies establishing businesses in China. China's fast growing GDP and rising wages have pushed demand for all kinds of products and services, thus allowing opportunities for Russian companies.
Forex Club is one of them. It entered the Chinese market in 2005 and provides foreign exchange trade services to both corporate and individual clients. Igor Galkin, the global sales director of Forex Club, says the growth in demand from Chinese residents for financial and trading services is actually increasing.
“One of the interesting trends we are seeing is that the older generation of Chinese citizens, they are reluctant to spend. The younger generation is coming up, spending on things like entertainment and other things like trading is no longer a taboo, it's a perfectly normal part of life,” said Galkin.
Russia is under huge financial pressure from economic sanctions imposed by the United States and EU, which has prompted it to turn to countries like China for investment. Russian companies have issued several so-called "Dim Sum bonds", seeking to raise money in the Hong Kong bond market.
Associate Professor of the Center for Brics Studies at Fudan University Liu Junmei said “Russia was ready to issue the RMB bond at the end of 2016, but China's qualified investors' investment quota of 90 billion US dollars was already fully used by that time. So the bond issuance plan was suspended.”
Before heading to Moscow, Chinese President Xi Jinping said that China and Russia should deepen economic and trade cooperation to reinforce their interests and better benefit their two peoples. Both sides will continue talks to work through regulatory concerns and finally bring the bonds to the market.