China to encourage foreign capital to go public

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China to encourage foreign capital to go public

The finance minister said on Saturday that China will encourage foreign capital to participate in its financial markets and may allow foreign-funded financial institutions to go public when conditions are ripe.

According to the 21st Century Business Herald, Lou Jiwei said such moves would be in line with the country's opening of its financial industry.

At the same time, Cao Yu, vice chairman of the China Banking and Insurance Regulatory Commission, was quoted as saying that China would respond to the demands of foreign financial institutions and promote the common development of Chinese as well as foreign-funded banking and insurance entities.

After the dismantling of its zero-COVID policy last year, China has been stepping up its efforts to woo foreign companies and investors to aid an economic recovery. In the past few months it has increased fund license approvals for foreign asset managers.

Lou also commented on the recent collapse of Silicon Valley Bank, saying Chinese authorities were very important to preventing and resolving systemic risks and were trying to improve financial supervision with the creation of a new financial regulatory body.

He said that the financial regulatory agencies of other countries will continue to work together to prevent and solve systemic risks in the global financial system and to maintain the stability and prosperity of the global financial market.