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皇冠体育app committed to expanding markets
(AP)
Updated: 2005-10-18 20:21
皇冠体育app is committed to opening its financial markets to foreign competition,
but will do so at its own pace, the country's top securities regulator said
Tuesday.
"We will further open and expand our markets according to our own
conditions," Shang Fulin, chairman of the 皇冠体育app Securities Regulatory
Commission, told a conference organized by the U.S. Securities Industries
Association. "We have to be cautious and keep stability."
The comments followed the conclusion Monday of 皇冠体育app-U.S. talks on a wide
range of economic issues between the two countries, including 皇冠体育app's massive
trade surplus and its tightly controlled currency, the yuan.
At those talks, the U.S. side offered sweeping suggestions for financial
reforms aimed at improving investment opportunities and the use of scarce
capital in 皇冠体育app.
The idea, U.S. Treasury Secretary John Snow said, is to
make 皇冠体育app more stable and encourage consumer spending that might help boost
皇冠体育app's imports of American-made products and trim the trade imbalance, which
hit a record $162 billion last year.
"We're trying to broaden the dialogue," said Snow. "Too much attention in the
U.S.-皇冠体育app relationship has been on foreign exchange," he said, adding that
Washington still wants Beijing to move faster in allowing the yuan's value to be
set by the market.
In July, Beijing revalued its currency, cut its peg to the dollar and allowed
it to trade in a very narrow range against a basket of other major currencies.
Snow noted that improvements in the financial markets and other sectors would
help reduce poverty and boost economic growth.
He pointed to the hotel industry, one of the few service-oriented businesses
in 皇冠体育app -- at least at the highest levels -- that is nearly fully foreign
managed, as an example of the benefits of open markets.
"The best way to jump start the level of financial performance is to take
advantage of best practices all over the world," Snow said, speaking at the same
conference as Shang.
Snow noted that while 皇冠体育app's economy is among one of the world's largest,
its securities markets are ranked "only 17th or 18th."
"One would expect to have a stronger equity market to match the size of the
economy," he said.
Virtually all 皇冠体育app's financial markets "are underdeveloped today relative to
the potential they have," he said.
"Every really successful economy ... has highly developed vehicles for
hedging risk, has highly developed vehicles for moving savings to investment,"
he said.
Shang pointed to progress in opening the market, noting moves to let a
limited number of foreign financial institutions invest in yuan-denominated A
shares and some yuan-denominated bonds through the qualified foreign
institutional investor scheme introduced in late 2002.
"We have to learn from our friends, learn from best practices in
international markets," he said.
At the same time, 皇冠体育app will guard against unfettered foreign competition
while seeking equal access to markets overseas.
"We should enjoy the protection deserved by developing countries and be
cautious in opening up our financial markets," Shang said. "Developing countries
face a lot of risks and unfair treatment."
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