Beijing may be open to allowing foreign financial firms to list in China, the former Chinese finance minister Lou Jiwei said in an interview with the Financial Times.
Lou, who served as finance minister from 2013 to 2017, said that he believed the Chinese government was seriously considering allowing foreign financial firms to list in the country. He added that the government should consider the possibility of allowing foreign financial firms to list on the Shanghai or Shenzhen stock exchanges.
Lou’s comments come as China is looking for ways to open up its financial sector. The government has already taken steps to attract foreign capital, such as allowing foreign investors to hold up to 51 percent ownership of domestic financial institutions. In addition, it has been encouraging foreign banks to set up domestic operations, and has been providing tax breaks to foreign firms.
If the Chinese government does decide to allow foreign financial firms to list, it could open up a new source of capital for the country, and potentially increase the competitiveness of domestic financial firms. It could also increase foreign investment in China, as investors would be able to purchase shares of foreign firms listed in the country.