PBOC Governor Zhou: We Are Open To You If You Are Open To Us

Talking Points:

• The Governor of the People’s Bank of China said Sunday that more of China’s financial sector could be opened to foreign investors
• Speaking at the Boao Forum he also said that Chinese investors needed to get better treatment overseas
• The Forum wrapped up with a call to buttress free trade, reject protectionism

Governor of the People’s Bank of China Zhou Xiaochuan said on Sunday that China was getting ready to allow foreign investors more access to its financial sector, but that any such liberalization would require reciprocity.

Insurance, banking, securities firms and payment systems could all see greater foreign involvement, Zhou reportedly told a gathering of Asian leaders on Sunday in a panel talk at the Boao forum for Asia which took place on the Chinese isle of Hainan.

“China would like to see that when we open wider in the financial sector, whether we can access some things. China is very interested to see that Chinese investors, especially private investors, should get better treatment overseas,” Zhou reportedly told the panel. He referred especially investment in non-military technology as one area where perhaps Chinese investors could be better treated in his view.

Elsewhere at the get-together, Zhou has predictably highlighted China’s commitment to free trade as worries about potential protectionism swirl around Western economies, notably that of the United States. Zhou said China wanted more clarity on this issue when leaders of the Group of 20 largest economies meet in Hamburg later this year.

The four-day forum wrapped Sunday with a declaration that globalization had supported global economic growth and cut poverty.

“Asian countries should stay committed to the course of open markets, inclusive growth and continued economic cooperation to ensure shared prosperity,” it said. However it admitted that globalization had also caused difficulties which needed to be addressed, even if protectionism ought to be rejected.

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--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX