China has made substantial progress in opening up its financial markets over the past decade, creating an abundance of opportunities for foreign corporations and institutions, said a Beijing-based finance executive.
“China’s bond market opening-up, together with simplified access for foreign bond issuers, has been a big tailwind for foreign institutions to expand their business,” Samuel Fischer, head of China onshore Debt Capital Markets for Deutsche Bank, told Xinhua in an interview.
Over the past years, China has scrapped foreign ownership caps for securities, fund management, futures and life insurance firms, allowing multinationals to have a larger and stronger presence. Cross-border stock and bond connect schemes have also been launched to offer overseas investors easier access to the country’s rapidly growing markets.
With China’s capital market opening up and closer connectivity with global markets, the bank has discovered new opportunities around the globe, developing a business that “goes round the clock,” the executive said.
When discussing the bond market, Fischer highlighted the role of Bond Connect in the development of China’s bond market. “It has become the primary channel for overseas investors interested in the Chinese mainland interbank bond market,” he said.
Fischer also noted that China decided in May to grant foreign investors access to the exchange bond market, saying the move is set to further facilitate foreign investments in the country and unify the cross-border management of funds.
Moving forward, he forecast growth opportunities to arise from close cooperation between China and Europe in trade, finance and climate policy, as well as that between China and the ASEAN countries under the Regional Comprehensive Economic Partnership agreement.
Despite a gloomy global growth outlook, the executive remains upbeat about the market prospects in China. “The Chinese market itself is huge and offers very attractive fundamentals for investors and issuers alike. It is still growing and is critical for our target clients both in and out of China,” Fischer said.