China will continue to consistently reform and open its financial sector, while putting “equal emphasis” on preventing risks through regulation and supervision.
“History has proved that areas that are more open are more competitive, and areas that are less open are less competitive and see risks accumulating (as a result),” China's Central Bank Governor Yi Gang said.
China will pay equal attention to the opening of the financial sector and the prevention of financial risks. At the same time, the opening of the financial sector will be accompanied by the improvement of financial regulation.
In November, China said it will lift the ceiling on foreign equity ownership in joint-venture firms involved in the futures, securities and funds markets to 51% from 49%. However, no exact timing was set.
The central bank governor added that domestic and foreign firms will be treated equally.
Yi also said China will open its bond market further, and that the second phase of the China International Payments System (CIPS) will be launched soon.
Speaking about inflation, Yi Gang said he expects its pressure to be subdued this year, and producer price increases to slow. The Chinese yuan will remain largely stable, Yi also said.
