As China's financial industry continuously opens itself wider to the outside world and the Chinese economy carries on a trend of steady growth in the time of COVID-19, RC expects that RMB assets will become more attractive to international investors and stand out as a key portfolio for global asset allocation and that the Chinese market will record more than one trillion US dollars in foreign capital inflows in the next five to ten years.
In China, President Xi Jinping emphasized at the Opening of the Boao Forum for Asia Annual Conference 2018 the principle of "translating" the major initiatives for financial opening-up "into reality, sooner rather than later", officially kicking off a new round of efforts to pursue further opening in China's financial industry. This was followed by the obvious acceleration of China's financial opening-up by the CPC Central Committee and the State Council. The People's Bank of China, the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission have successively announced and promoted the implementation of 50-plus measures for opening-up, significantly enhancing the openness of financial institutions and the financial market. In parallel with the implementation of a series of major opening-up measures, it is very clear that China's financial opening-up has entered into the "Era 2.0" overall, and shown such salient characteristics as "strong policy measures, ample development space and strong response from the international community".
Internationally, A shares and Chinese bonds have been added to some world-renowned indexes, including MSCI, S&P Dow Jones, FTSE Russell and the Bloomberg Barclays Global Aggregate Index, and seen an increasing weight, demonstrating the recognition of RMB assets by the international market. China has managed to keep its economy stable with a long-term promising trend despite the fact that the rest of the world is trapped in the pandemic. The sound economic fundamentals of China make it possible for RMB assets to sustain high returns and good security over a long term, a fundamental condition for RMB assets to continuously attract the buying and holding of foreign investors.
RC believes that the ongoing round of financial opening-up will unleash enormous business growth potential, and provide Chinese financial institutions with superb internationalization opportunities. The internationalization of the financial industry is not only an opportunity but also a challenge for domestic financial institutions. Compared with foreign peers, which have been long tested by the fluctuations of international capital market cycles, Chinese financial institutions have more for improvement in international management experience, governance system, investment and research system, product innovation ability, cross-border asset allocation ability and risk control ability.
What are the characteristics of the active opening-up of Chinese financial institutions and financial market and foreign investment in China? What are the preferences of foreign investors in various segments of China's financial industry? How should Chinese financial institutions take the initiative to seize the opportunity in overseas markets? How will RC Family Office, which is committed to jointly promoting the development of China's financial industry, make full use of its international experience and overseas resources to help domestic financial institutions go international?Please click "Read the original text" at the bottom left for details.