One of China’s leading finance experts has highlighted internationalisation of the renminbi a key goal for reform of the country’s financial system.
Wu Xiaoqiu (吴晓求), director of the Finance and Securities Institute at Renmin University, said that China’s financial opening would encompass three major missions in future:
- External opening of financial institutions,
- Renminbi internationalisation reforms, and
- Opening of the financial market.
According to Wu while China has already done “extremely well” in the first area, renminbi internationalisation and financial market opening would be key development points in future.
Wu made the remarks on 25 July at the 2020 International Monetary Forum (国际货币论坛) that was held online by Renmin University.
Wu further pointed out that while China’s capital markets had grown over the past three decades to reach 50 trillion yuan in total, there were still other issues confronting its growth in future.
To this end Wu advocates that China establish a new international financial centre for its capital markets, characterised by rule of law, contracts and transparency.
Fang Xinghai, vice-chair with the China Securities Regulatory Commission (CSRC), recently called for accelerated internationalisation of the renminbi to avoid the possibility of the US imposing sanctions upon China similar to those applied to Russia.
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