China - December 10, 2024 China accelerates high-level financial opening-up (Voice_over) Since the beginning of this year, China's financial regulators have introduced a series of policies to further open up the sector. These include optimizing direct market entry mechanisms for Bond Connect and Swap Connect. Foreign investors now hold more than four trillion yuan in bonds, indicating the steady growth of RMB internationalization. In the first eight months of 2024, RMB-denominated cross-border payments in trade in goods accounted for 26.5 percent of total payments. Authorities also elevated Hong Kong's position as a global financial hub, by launching the so-called "Three Connection, Three Facilitation" Initiative. (Sound_bite) Tian Lihui, Director, Institute of Finance and Development, Nankai University: "The steady advancement of RMB internationalization is an important reflection of the two-way opening of China's financial market. As the share of RMB in goods trade settlements continues to rise, the international status and influence of the RMB are also gradually strengthening." (Voice_over) China has significantly relaxed market access for foreign financial services. It has also kept improving the pre-establishment national treatment plus negative list management system. And foreign financial institutions are accelerating their expansion into China's market. Data shows by the end of June, foreign banks had established 41 foreign legal entities and more than 116 branches on the Chinese mainland. There were also 127 representative offices, with a total of 860 business institutions and total assets of 3.87 trillion yuan. (Sound_bite) Dong Ximiao, chief researcher at Merchants Union Consumer Finance Co Ltd,: "Limits on foreign ownerships in China's banking, securities, insurance, fund management, and futures sectors have been completely removed, and foreign financial institutions are accelerating their expansion into the Chinese market. Overall, the level of openness, competitiveness, and influence of China's financial markets continues to increase, and a two-way open financial market system is rapidly taking shape." [Restriction: No access Chinese mainland]