A view of Shanghai Photo: VCG

At the 2024 Lujiazui Forum in Shanghai, foreign financial institutions and banks emphasized the importance of the China market and the positive impact of China's ongoing financial opening-up efforts. 

Continuous enhancements in financial opening-up have bolstered the confidence of foreign financial institutions in expanding their operations in China, they said at a subforum titled "Benchmarking Against High-standard Economic and Trade Rules and Promoting High-standard Institutional Opening-up of the Financial Sector" on Thursday.

Marc Luet, head of the Japan, Asia North and Australia cluster and banking of Citi, spoke highly of China's regulatory efforts and flexible approach in cross-border data transmission. 

The rules and policies on cross-border data transmission have reduced barriers in related areas, benefiting both domestic and foreign financial institutions, he said.

"We have seen China's continued efforts and determination in financial opening-up," he added

Similarly, Alan Ho, chief financial officer for the Asia-Pacific and co-senior country officer for China at J.P. Morgan, noted the increasing stability and speed of China's financial market opening-up in recent years. 

"Various types of foreign financial institutions have been establishing new entities, particularly in the securities sector, which has been a significant breakthrough for foreign investors. The increasing participation of foreign institutions in various financial products in China is a positive sign for long-term investment and development in the country," he said.

The remarks came after foreign institutions gain pace in setting up entities and expanding their business in the China market. 

On Wednesday, Allianz Global Investors Fund Management Co held an unveiling ceremony in Shanghai, making it the first German wholly foreign-owned public fund management company in China.

From submitting the application to the China Securities Regulatory Commission in March 2023 to receiving approval in April 2024, the speedy approval process highlights the efficient and business-friendly environment in Shanghai, as well as China's commitment to further opening up its financial markets to foreign investors, Leo Shen, general manager of Allianz Global Investors Fund Management Co, told the Global Times in a statement.

Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at the Renmin University of China, said that China has largely removed restrictions on foreign institutions entering the financial market, and there is a need to further facilitate the flow of funds for foreign institutions and provide a more convenient market environment.

"Foreign institutions also need to adapt to the unique characteristics of the Chinese market, including investment preferences. Providing localized services for Chinese businesses and residents is essential for foreign institutions to succeed in China," Dong told the Global Times on Thursday. 

As of the end of 2023, foreign banks in China had established 41 legal entity banks and 132 representative offices. The number of operational institutions had reached 888, with total assets amounting to 3.86 trillion yuan ($531.64 billion), according to data from the National Financial Regulatory Administration, demonstrating the growing presence and investment of foreign financial institutions in China.

The Chinese authorities have reiterated their commitment to further opening-up with greater determination and efforts. 

China will expand the opening-up of venture capital investment by revising regulations and boosting accessibility for foreign investors, according to measures unveiled by the State Council, as the country aims to develop patient capital, the Xinhua News Agency reported on Wednesday.

The country will revise regulations on the administration of foreign-invested venture capital investment enterprises to facilitate foreign investors in engaging in venture investment.

More support will be provided to international professional investment institutions and teams to establish yuan funds within the territory, and leverage their investment experience and comprehensive service advantages.