Does China welcome foreign input in the financial sector?
China's leadership recognizes that foreign participation in all financial service areas is essential to the development of a mature financial industry. The country seeks foreign expertise to assist in creating a workable pension system, institute credible auditing systems, run investment banks, and operate mutual funds. The realization that reform cannot be delayed and that domestic financial players should be subjected to real competition is behind the drive to open financial services to foreign investment within a specific timeframe.
PRC regulators hope that foreign participation in this sector will also help create a pool of financial professionals and with them institutional investors and credible information reporting. In a parallel trend, mainland regulators have recruited several seasoned financial professionals from Hong Kong and elsewhere to join the PRC regulatory ranks.
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