Beijing's opening-up has grown financial influence

Beijing is forging ahead in widening market access for financial institutions with new measures as part of its effort to increase the capital's financial influence.

The capital has proposed 38 new measures for the next three years and expects to ease market access for financial institutions while promoting the cross-border use of renminbi, said the Beijing Local Financial Supervision and Administration at a mid-August news conference.

The State Council in January approved a new round of pilot programs for Beijing to continue opening up its service industry to the world, rolling out more than 50 innovative policies for the financial sector.

In July, the city's financial watchdog announced plans for 10 measures to promote opening-up in the financial sector, which included preferential policies, management institutions and services for foreign financial professionals.

Huo Xuewen, head of the administration, said Beijing has achieved results in the financial sector during this round of opening-up under the guidance of national authorities.

Yin Yong, vice-mayor of Beijing, said the financial sector is an essential part in opening up Beijing's service industry.

"Now it is a great time for China's opening-up in the financial sector for foreign financial institutions to enter into China," Yin said.

There are over 50 foreign capital financial organizations, 160 branches and more than 200 representative offices operating in Beijing.

In 2018, Switzerland's largest bank, UBS, announced plans to increase shareholding in its securities joint venture UBS Securities in China from 24.99 percent to 51 percent.

With the approval of the country's securities regulatory commission, UBS became the first foreign bank to hold a majority stake in a China securities joint venture.

"Growing our China business is a key element of our strategy," Sergio Ermotti, CEO of UBS Group, said in a statement of the company.

"The further opening-up of China's financial sector represents great opportunities for our wealth management, investment banking and asset management businesses," Ermotti added.

In June, the Society for Worldwide Interbank Financial Telecommunication, or SWIFT, a Belgium-headquartered financial messaging services provider, set up a wholly-owned entity in Beijing.

The move is a milestone of SWIFT's global business, making the RMB the third international currency accepted by the organization after the dollar and the euro.

Beijing has actively supported SWIFT to set up and register its subsidiary here, company executive Alain Raes said.

Raes added that this reflects Beijing's open and inclusive financial environment as well as its efficient handling capabilities.

(China Daily 09/19/2019 page10)