President Xi: China to further widen market access

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China will significantly broaden its market access, especially in financial sector, said Chinese President Xi Jinping at the 2018 Boao Forum for Asia on Tuesday.

Xi made the remarks while delivering a keynote speech at the opening ceremony of the annual conference.

Late last year, China announced that measures would be taken to raise foreign equity caps in the banking, securities and insurance industries.

The measures, announced last November by Vice Finance Minister Zhu Guangyao during a government briefing, include raising the limit on foreign ownership in joint-venture firms involved in the futures, securities and funds markets to 51 percent from the current 49 percent, which would be removed entirely three years after the new limit takes effect.

"We will ensure that these measures are materialized," Xi said.

China will accelerate the opening-up of the insurance industry, ease restrictions on the establishment of foreign financial institutions in China and expand their business scope, and open up more areas of cooperation between Chinese and foreign financial markets, he said.

VCG Photo

On manufacturing, he said China has basically opened up this sector with a small number of exceptions on automobiles, ships and aircraft. "These industries are now in a position to open up. Going forward, we will reduce as soon as possible limits on foreign investment in these industries, automobiles in particular," Xi said.

Xi’s comments prompted a rapid and largely positive reaction in global financial markets. US stock futures rallied, Asian equities bounced and the safe haven yen fell on Tuesday.

Data from the country's Ministry of Commerce show that in 2017, foreign direct investment (FDI) into the Chinese mainland rose by 7.9 percent year-on-year to 877.56 billion yuan (136.33 billion US dollars), thanks to further opening-up.

The four-day event, themed "An Open and Innovative Asia for a World of Greater Prosperity", is being held in south China’s Hainan Province from April 8 to 11.

(With input from agencies)