China's pledge to deepen financial reform, which was made at the
third national financial work conference that concluded on
Saturday, has been welcomed by overseas financial institutions
registered in the country.
"The conference, which was held at the end of the grace period
for China's WTO accession, was of great significance for the nation
to constitute an open, competitive financial regime," David Dollar,
director of the World Bank Office Beijing, told Xinhua on
Sunday.
Tang Min, chief economist with the Asia Development Bank Mission
in China, said, "The strategies and principles set out at the
conference will further crystallize the future orientation of
China's financial reform.
"The financial sector, as an economic engine, should also make a
readjustment as China continues its shift from solely stressing
economic growth to building a harmonious society."
According to the two-day conference, China will continue to
deepen reform of state-owned commercial banks and build a
multi-layer, sustainable rural financial system that covers most
rural areas and most rural residents.
Efforts will be made to expand capital and insurance markets,
steadily push forward market-oriented reform of interest rates and
seek more channels to use the nation's huge foreign exchange
reserve that totaled over one billion US dollars at the end of last
year.
"All these measures will have positive influence on the Chinese
economy," said Dollar.
"It can be interpreted from the measures that the Chinese
government is encouraging more non-state capital to flow into the
rural financial market and is actively pursuing how to use the
mammoth foreign exchange reserve in a more efficient way," said
Dollar.
"The decision to open the financial market wider conforms with
China's commitment to the WTO membership, which is conducive to
creating a fair, transparent environment of competition," he
commented.
According to Stephen Green, a senior economist at the Standard
Chartered Bank China, the conference underscored China's
determination to accelerate the opening of the banking sector.
"From Standard Chartered's experience in emerging markets, a
financial market that exhibits confidence in opening up will be
conducive to both economic growth and economic security," he
noted.
"Citigroup believes that the further opening up and development
of the banking sector will provide wonderful opportunities not only
for foreign banks but also for Chinese companies and consumers,"
said Richard Stanley, CEO of Citigroup China.
He added that Citigroup would continue to invest in China.
(Xinhua News Agency January 22, 2007)