London Daily

Focus on the big picture.
Sunday, Jul 26, 2026

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
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
Autopsy Finds No Violence in Death of Epstein-Linked Model Scout
Indian Education Minister Resigns After Cockroach Youth Protests
California Desert Data-Centre Plan Stalls as Water and Power Disputes Mount
Northern Ireland Border Security Tightened After Military-Grade Explosive Interception
British Hospitality Sector Targets Summer Visitors Through Regional Promotions
England River Access Debate Intensifies After New Data Shows Limited Public Access
Royal Navy Strengthens Maritime Vigilance Amid Rising Security Concerns
UK Education Department Expands Mental Health Support for Young People Entering Work
UK Tourism Industry Launches Summer Campaigns to Boost Domestic Travel
North England Transport Plans Advance to Support Industrial Growth
Financial Markets Watch New Government’s Economic Strategy as Investors Assess Fiscal Risks
Royal Navy Continues Monitoring Russian Naval Activity Near UK Waters
UK Care Workers May Receive Immigration Exemptions Under Proposed Visa Changes
Health Secretary Yvette Cooper Begins Emergency Talks to Address NHS Staffing Shortages
UK Banks Launch High-Interest Savings Offers to Attract Household Deposits
North Sea Oil Drilling Projects Face Delays After Offshore Equipment Accident
Cairngorms Wildfire Highlights Growing Pressure on UK Emergency Services
UK Government Borrowing Plans Put Pressure on Ten-Year Gilt Markets
Royal Navy Aircraft Carrier HMS Prince of Wales Returns After NATO Northern Flank Mission
Metropolitan Police Opens Criminal Investigation Into Reform UK Political Donations
Scottish Government Requests Military Support as Cairngorms Wildfire Forces Emergency Response
Andy Burnham Takes Office as UK Prime Minister and Unveils New Cabinet Team
War, Youth Revolt and the Global Struggle for Control
War, Power and the Rising Price of Political Decisions
High Street Sales Suffer Sharpest Summer Decline in Five Years
Wales Approves Higher Taxes on Second Homes and Long-Term Empty Properties
Environment Agency Imposes Record £150 Million Penalty on Water Companies
UK Competition Watchdog Blocks U.S. Takeover of Cambridge Chip Designer
Scotland Unveils Land Reform Bill to Expand Renewable Energy Projects
Northern Ireland Secures £500 Million Technology Investment for Belfast Cybersecurity Hub
NHS Rolls Out AI Triage System Across Major Hospitals in England
UK Strengthens North Sea Naval Cooperation With European Allies
UK Chancellor Commits £7 Billion to Accelerate Manchester-Leeds Rail Link
Bank of England Signals Interest Rate Cuts After Inflation Falls Below Target
Badenoch Rejects Grant Shapps' Bid to Return as Conservative Candidate
BAE Chief Warns Britain Has Underestimated the Risk of War
Burnham Rules Out New Scottish Independence Referendum in First Talks With Swinney
UK Government Strengthens Northern Economic Agenda Through Manchester Headquarters and Regional Partnerships
United Kingdom Opens New Furness Peninsula Coastal Route Under King Charles the Third England Coast Path
England Reduces Business Costs for Hospitality Sector Through New Relief Package
United Kingdom Allocates Seven Point Three Million Pounds for Zero-Emission Aviation Research
United Kingdom Begins Restoration Works on Portishead Railway Line After Six Decades Without Passenger Services
United States Tariff Measures Create New Trade Challenges for United Kingdom and European Union Businesses
Prime Minister Andy Burnham Meets Scottish and Welsh Leaders to Promote Regional Growth Cooperation
United Kingdom Government Announces Twenty Percent Business Rates Cut for Pubs, Clubs, and Music Venues
Prime Minister Andy Burnham Opens Manchester Government Headquarters to Shift Decision-Making Away From Westminster
United Kingdom Defence Ministry Says Armed Forces Ready After Iran Accuses London Over US Military Strikes
United Kingdom Inflation Falls to Two Point Six Percent as Prime Minister Andy Burnham Gains Economic Breathing Room
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
×