Head of global banking association highlights growing openness of China's financial market
China's financial markets have become significantly more open, global and mature, while a gradual easing of cross-border capital flows could further expand the international use of the yuan, according to Tim Adams, president and CEO of the Institute of International Finance.
Adams spoke in Beijing during the four-day Financial Street Forum, which opened Monday. In an interview with China Global Television Network, he said China's financial system has undergone major changes over the decades he has been visiting the country.
He said China's capital markets have become deeper and broader, while interest from international investors has increased substantially. He pointed in particular to strong demand in the country's initial public offering market. Adams noted that China's growing role in global trade and the expansion of Chinese financial institutions overseas have made the country's financial sector increasingly integrated into the global system.
In his view, foreign investors now regard doing business in China as much more routine than in the past. He recalled that when he first began visiting the country, China's economy accounted for only a small share of global GDP, compared with more than 20 percent today.
Addressing global challenges including geopolitical tensions, debt and liquidity risks, the IIF chief called for stronger international cooperation. He said forums such as the IMF, World Bank, IIF and Financial Street Forum help bring together investors and policymakers to identify problems and develop joint solutions.
Adams also discussed the internationalization of the yuan, saying its overseas use has expanded alongside China's growing role in global trade.
Further progress, he said, would depend on continued gradual opening of China's capital markets, further development of domestic bond and equity markets, improved cross-border capital mobility and broader access to hedging instruments.
Adams stressed that such reforms should proceed gradually. Giving investors greater confidence that capital can move both into and out of the country, while providing a broad range of investable assets, could make China's markets more attractive internationally.
According to CCTV+, the IIF chief expects China's financial infrastructure to continue developing and opening as the country becomes more deeply integrated into the global financial system.
