China’s Big Bang Is a Squib, for Now
Foreign banks face barriers as the market is opened.
Photographer: Brent Lewin/Bloomberg
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The guests are starting to arrive, but the house isn’t quite ready for this party. That’s the way to view a slew of recent measures to open China’s $40 trillion financial industry to outsiders.
This week, Beijing granted additional quotas for domestic funds to invest in overseas securities under the QDII plan, the first time it has done so in three years. At the same time, the government boosted permitted outbound institutional investment from Shanghai and Shenzhen. Meanwhile, Wall Street and other international banks are parsing draft rules on increasing stakes in securities joint ventures after China made good on a late 2017 pledge to ease restrictions.