Following the limited effect of trade war, China will be widening financial sector, says regulator

Guo Shuqing (Insurance regulator and head of banking) states that Beijing does not plan to bring about the devaluation of yuan so as to raise exports.

Also states that in the future, the sector’s foreign investors may be able to take greater stakes of 61, 71 or even 100%

The Chief financial regulator says China has plans to further widen its financial sector in spite of the trade war with the United States. It also does not intend to bring about a devaluation of yuan in order to support exports.

Guo Shuqing (the chairman of the China Banking and also the Insurance Regulatory Commission), states how Beijing would also welcome on-deck, increased number of foreign financial establishments and that Beijing was sure it had any probable fallout from the trade war under control.

Guo stated how one of their chief reforms (for the current year) is to boost their capital markets’ fundraising capacity so as to contribute to economic development.

In order to assist the bringing about of this reform, China intends to extend foreign financial institutions’ access. According to Guo, rather than be limited to 51%, the foreign investor’s stake might go up to about 61, 81 or 100%.

Guo also disregarded market speculations regarding the devaluation of the yuan, stating thatChina had no intentions of assigning a decreased value to the currency so as to accelerate exports.

He also says that the only reason yuan was allowed to fall (early in May) was the US government’s independent decision so as to raise the tariffs. The instability this caused in the financial markets was why some people thought this would affect the global economy. According to Guo, intentional methods have never been exercised to lead to yuan’s depreciation so as to balance out the effects of conflicts brought about by trade.