A view of Hong Kong Stock Photo: VCG

China’s financial sector will continue to open up more widely, and the country is committed to creating a market-oriented, law-based and international business environment to support foreign institutions to participate more comprehensively and deeply in the Chinese financial market, senior Chinese officials said on Tuesday at the ongoing Global Financial Leaders’ Investment Summit 2024 held in the Hong Kong Special Administrative Region (HKSAR).

While expressing strong confidence in Hong Kong’s strengthened position as an international financial center under the support of the central government, they also expected the city to play a greater role in expanding financial opening and cooperation.

Observers said the comments further sent a resounding signal of the country’s commitment to high-level opening up, particularly in the two-way opening of the financial sector. It is expected that the inflow of more foreign capital will add new impetus to China’s economic growth momentum and promote the healthy development of the Chinese capital market.

As a result, foreign investors will also be able to share the development dividends of an open China, analysts said.

“We hope that the HKSAR will seize the historical opportunities provided by the country’s reforms and development, continuously deepen financial reforms and innovations, expand financial openness and cooperation, actively adapt to national development strategies, and unswervingly safeguard economic security,” He Lifeng, a member of the Political Bureau of the Communist Party of China (CPC) Central Committee and Vice Premier, said in a speech delivered to the summit on Tuesday, Xinhua News Agency reported.

He hoped that in the new journey, Hong Kong would continue to write a brilliant chapter for the development of one country, two systems.

The 2024 Global Financial Leaders’ Investment Summit, the third of its kind, took place in Hong Kong from Monday to Wednesday.

Prominent leaders from global financial institutions including banks, securities firms, asset managers, sovereign wealth funds, private equity and venture capital firms, are participating in the summit, according to a statement on the website of the Hong Kong Monetary Authority, the event’s organizer.

Regarding financial opening, Li Yunze, director of the National Financial Regulatory Administration (NFRA), said at the summit that NFRA will continue to deepen the reform and opening up of the financial industry, while focusing on creating a business environment that is market-oriented, law-based and internationalized, China News Service reported.

“The country welcomes global investors to do business in China,” Li noted.

During the summit, Chinese officials also outlined more measures to deepen the two-way opening of China’s capital market and facilitate cross-border investment.

Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), China’s top securities regulator, stressed that efforts will be made to further ensure the smooth operation of overseas financing channels, and the CSRC will actively support qualified mainland Chinese companies in conducting overseas public listings , the Securities Times reported.

China will further expand connections with overseas markets as well as broaden the scope of eligible shares under the Shanghai-Hong Kong and Shenzhen Hong Kong Stock Connects to attract long-term foreign capital to the Chinese mainland market.

Tian Yun, an economist based in Beijing, told the Global Times on Tuesday that the comments by Chinese officials reflected increased efforts by policymakers to open up China’s financial sector, including the stock and bond markets.

“The entry of more foreign financial institutions gives their mainland Chinese counterparts an opportunity to learn and grow. At the same time, it allows foreign investors, who are optimistic about the prospects of the Chinese economy, to take advantage of China’s development dividends,” Tian said. He also noted that China’s financial development will serve as the cornerstone of global economic growth.

As Chinese assets increasingly rise as a “safe haven” for global investors, it is important that the Chinese mainland market continues to integrate with foreign capital markets to bolster growth momentum, according to Tian, ​​who particularly highlighted Hong Kong’s role as a “super connector.”

According to Li, as part of measures to raise Hong Kong’s status as a global financial center, NFRA will actively support Chinese-funded banks and insurance institutions to open regional headquarters in Hong Kong. It will also cooperate with HKSAR authorities to jointly address risks and further improve the bilateral communication mechanism on financial regulation.

Liang Haiming, chairman of the Hong Kong-based China Silk Road iValley Research Institute, told the Global Times on Tuesday that he hoped Hong Kong could seize the opportunities provided by the central government’s package of incremental policies to strengthen its status as an international financial , trade and logistics center, therefore achieve “sustainable economic stability and development.”