China Aims to Open Finance by Year End

Bloomberg: China Adds Flesh to Bones of Plan for Big Bang Financial Opening
The daily Shanghai-Hong Kong stock connect quota will quadruple to 52 billion yuan ($8.3 billion) from May 1, People’s Bank of China Governor Yi Gang said Wednesday at a panel discussion at the Boao Forum for Asia. More financial-sector opening will be realized by June 30, he said, citing a range of items from limits on foreign insurers to easing foreign ownership caps on securities companies.

The fresh details from the new central bank chief may help further ease trade tensions after Xi’s renewed pledges to open sectors from banking to auto manufacturing drew praise from U.S. President Donald Trump. When asked by Bloomberg News whether the financial reforms represented a “big bang,” Yi characterized them as gradual.

“I think that the Chinese philosophy is gradualism,” Yi said. “I’ll be very cautious. I even don’t want to use the word ‘bang,’ no matter if it’s big or small. I think this is a prudent, cautious, gradualist move.”

...Ending restrictions on the business scope of foreign securities firms’ Chinese joint ventures will allow them to operate in the same areas as their local counterparts, Yi said. He also said officials aim to start a stock trading tie-up between Shanghai and London this year.

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