London Daily

Focus on the big picture.
Tuesday, Nov 25, 2025

China wooing investors to Shanghai, with HSBC, Goldman answering

China wooing investors to Shanghai, with HSBC, Goldman answering

Central bank chief Yi Gang tells Bund Summit that the country’s focus on domestic economy does not mean it is shutting the door on the rest of the world.

Chinese financial officials have made fresh promises to open up the financial sector and attract international investors to the country’s main financial centre.

The pledges were made during the Shanghai Bund Summit, a two-day gathering of Chinese bankers and regulators, that offered the country’s leaders an opportunity to showcase their plans to the global financial community ahead of a key policy meeting in Beijing, where President Xi Jinping is expected to map out the country’s development blueprint for the next five years.

One key message China is trying to deliver is that it is committed to deepening its economic and financial ties with the rest of the world even though relations between Beijing and Washington have plunged to their lowest level in decades.

On Saturday, Vice-President Wang Qishan made a rare appearance at the summit and told delegates – who included former US treasury secretary Robert Rubin, hedge fund manager Ray Dalio and Bloomberg chairman Peter Grauer – that “win-win cooperation is the only right choice for the world”.

Yi Gang, the People’s Bank of China governor, told the event on Sunday that China’s “dual circulation” strategy, which will include an increasing emphasis on domestic consumption and innovation, is not intended to shut the door on the rest of the world but to make better use of “domestic and international markets”.

He said that, as the country that has contributed nearly a third of average global growth in average in the last two decades, China has to remain open to the world and financial opening will be a key piece in the puzzle.

“It should be noted that financial opening is mutually beneficial.” Yi told the forum. “Open competition helps the development and improvement of China’s financial industry, while international investors entering China can share the dividends of China’s growth and reform.”

China has accelerated its financial opening up since 2018, lifting longstanding restrictions on total foreign ownership of financial institutionsand making it easier for foreign investors to buy Chinese bonds.


Yi also said that China was working to make it easier for foreign investors to use the yuan. “The Chinese authorities will reduce restrictions on the cross-border use of yuan,” he told the summit, adding that China will enhance a “supporting system” to encourage its use.

Li Qiang, the Shanghai party secretary, told the event that Shanghai has made substantial progress in becoming an “international financial centre” and the city was trying to become the go-to place for foreign investors who want access to Chinese banking, securities and insurance.

“When President Xi Jinping visited Shanghai last year, he required us to enhance the role of Shanghai in global resource allocation. In particular, he specifically required that Shanghai’s financial market development must facilitate China’s national financial opening and yuan internationalisation.”

Fang Xinghai, a vice-chairman of the China Securities Regulatory Commission, said China was creating new channels for foreigners to invest in onshore stocks on top of existing channels such as the Qualified Foreign Institutional Investor scheme and the stock connect with Hong Kong.

The future of China’s capital market opening will be “comprehensive institutional opening”, an upgrade from the current “opening by providing channels”, Fang said.

While few international investors were able to attend the event in person – most foreign delegates took part via video-link – some participants welcomed the promises.

John Waldron, president and chief operating officer at Goldman Sachs, told the forum that the US bank was “encouraged by the enhanced access China providing foreign firms … which we believe will lead us to a stronger, more resilient Chinese financial sector.”

Waldron suggested that China should relax restrictions on outbound flows, allow foreigners to become market makers in the bond market, and align Chinese regulation with international norms to “bolster investors’ confidence in China’s capital markets, to pave the way for further inflows, and enable increased cooperation between the United States, the rest of the world, and China”.

Noel Quinn, chief executive of HSBC, said the bank’s commitment to mainland China “is unwavering even in today’s challenging time”.

HSBC has had a bumpy relationship with China after state media accused it of helping the US to “frame” the telecoms giant Huawei, whose chief financial officer Meng Wanzhou is currently fighting extradition from Canada on charges related to alleged breaches of sanctions on Iran.

The bank has also been excluded from an underwriting consortium for a sales of Chinese government bonds.

But Quinn said that HSBC, which was one of the event’s sponsors, “has been very pleased to be a proactive participant” in China’s financial opening up and the bank “looks forward to continuing to do so in the years to come”.

During a panel discussion Quinn also told Liao Min, the Chinese finance vice-minister, in a panel discussion that HSBC will submit a paper to the Chinese government offering suggestions on how to open up, including measures to encourage more overseas companies to issue shares in Shanghai.

Newsletter

Related Articles

0:00
0:00
Close
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
Germany, France and UK Confirm Full Support for Ukraine in US-Backed Security Plan
UK Low-Traffic Neighbourhoods Face Rising Backlash as Pandemic Schemes Unravel
UK Records Coldest Night of Autumn as Sub-Zero Conditions Sweep the Country
UK at Risk of Losing International Doctors as Workforce Exodus Grows, Regulator Warns
ASU Launches ASU London, Extending Its Innovation Brand to the UK Education Market
UK Prime Minister Keir Starmer to Visit China in January as Diplomatic Reset Accelerates
Google Launches Voluntary Buyouts for UK Staff Amid AI-Driven Company Realignment
UK braces for freezing snap as snow and ice warnings escalate
Majority of UK Novelists Fear AI Could Displace Their Work, Cambridge Study Finds
UK's Carrier Strike Group Achieves Full Operational Capability During NATO Drill in Mediterranean
Trump and Mamdani to Meet at the White House: “The Communist Asked”
Nvidia Again Beats Forecasts, Shares Jump in After-Hours Trading
Wintry Conditions Persist Along UK Coasts After Up to Seven Centimetres of Snow
UK Inflation Eases to 3.6 % in October, Opening Door for Rate Cut
UK Accelerates Munitions Factory Build-Out to Reinforce Warfighting Readiness
UK Consumer Optimism Plunges Ahead of November Budget
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
×