Promise to open boosts foreign executives’ trust

According to foreign executives and analysts, investing in China is essential for the survival of global financial institutions since the opportunities presented by the opening of the second-largest economy in the world are still vast and attractive. According to them, foreign financial institutions are particularly interested in the asset and wealth management, insurance and pensions, and green and digital finance sectors. These sectors may see an increase in investment in China this year as a result of the nation’s economic recovery and improving Sino-US economic relations. They made their remarks in response to Xi Jinping, the central secretary of the Communist Party of China, who emphasized the need of increasing opening-up in order to boost the effectiveness and capability of allocating financial resources.

On January 16, he gave the following speech at the commencement of a study session on the promotion of high-quality financial development, which was attended by province and ministerial-level authorities. Paul Murray, the CEO of life and health reinsurance at Swiss Re, a leading worldwide reinsurance provider, stated that the company’s commitment to and investment in China is crucial for its future as a global enterprise. According to Murray, China is seeing a sharp increase in insurance demand in contrast to Europe and the US because of the nation’s strong economic growth and growing middle-class population.

The optimism of the CEOs is a reflection of how international financial institutions are drawn to China’s financial sector. Nine foreign-owned fund management companies and three securities companies with full foreign ownership have been granted permission to operate in China after the country lifted ownership restrictions in the fund management and securities sectors in 2020. On Saturday, the National Financial Regulatory Administration announced that China will continue to encourage international organizations with experience in wealth management, healthcare, senior care, and the sale of nonperforming assets to come to China for commercial development.