Central bank governor cites four steps to open up economy
Plan includes the relaxation of restrictions, the improvement of stock connects and reforming the RMB exchange rate mechanism
Yi Gang, China’s central bank governor, has published an article outlining plans to further open up China’s financial industry in a proactive and orderly manner, The Beijing News reported.
The first step, is to ensure the implementation of various measures about the all-around opening of the financial industry.
For example, continuing to relax restrictions on shareholding ratios of foreign-invested financial institutions, further improve the Shanghai-Hong Kong and Shenzhen-Hong Kong stock connects, and launch the Shanghai-London stock link as soon as possible.
Second, to further deepen the reform of the formation mechanism of the RMB exchange rate. To create a floating exchange rate system based on market supply and demand with reference to a basket of currencies.
Third, to promote the opening of capital projects in a sound and orderly manner, and steadily expand the capital account convertibility to create a fair, transparent and predictable business environment.
And lastly, to closely integrate the opening up with supervision and to effectively prevent and resolve financial risks.