London Daily

Focus on the big picture.
Friday, Mar 27, 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
Jaguar Land Rover Halts Production at UK Plant Amid Supplier Disruption
UK Police Reverse Position, Confirm Arrests Will Resume for Palestine Action Protests
UK Small Businesses Face Europe’s Steepest Cost Pressures, New Survey Reveals
US Envoy Urges UK to Proceed with King’s Visit Amid Diplomatic Sensitivities
FTSE 100 Drops Over One Percent as Middle East Tensions Weigh on Markets
UK CO2 Plant Set to Reopen as Authorities Move to Safeguard Supplies Amid Middle East Tensions
Trump Urges Stronger Defence Investment as He Questions Allied Naval Capabilities
New COVID Variant Detected in UK Raises Concerns Over Vaccine Effectiveness
FTSE Russell Moves to Standardise Free-Float Rules for UK and International Listings
HBO Max Launches in UK and Ireland, Marking Major Step in Global Streaming Expansion
UK Signals Readiness to Seize Russian ‘Shadow Fleet’ Vessels in Escalation of Sanctions Enforcement
Escalating Middle East Conflict Seen as Major Threat to UK Economic Stability
Early Challenges Mark Prince Harry and Meghan’s Australia Visit
UK Government Rejects Cover-Up Claims After Theft of Former PM Aide’s Phone
Cyprus Opens Strategic Talks with UK Over Sovereign Base Areas
UK Faces Risk of Sharp Inflation Surge Despite Stable Pre-Crisis Figures
UK Police Arrest Two Over Suspected Antisemitic Arson as Iran Link Investigated
UK Inflation Holds at Three Percent Ahead of Oil Price Shock from Iran Conflict
UK Fuel Prices Face Upward Pressure as Global Oil Trends Raise Cost Outlook
Girlguiding UK Sets September Deadline for Membership Policy Change Affecting Trans Participants
Germany and UK Accelerate Wind Power Expansion to Strengthen Energy Security
UK Moves to Ban Cryptocurrency Donations to Political Parties Over Foreign Influence Concerns
UK and Turkey Finalise Major Air Defence Agreement Worth Billions
Apple Introduces Mandatory Age Verification for iPhone Users in the UK
Diverging Views Emerge Over Meghan Markle’s Planned Australia Appearance
Trump Signals Frustration with UK Leadership Amid Diverging Approaches to Iran Conflict
UK Government Takes Control of Hunterston B as Landmark Nuclear Decommissioning Begins
UK Public Inflation Expectations Jump Sharply in March, Raising Pressure on Bank of England
UK Ministers Warn Expanded North Sea Drilling Would Deepen Exposure to Global Energy Volatility
Delayed UK Defence Investment Plan Leaves Suppliers Under Severe Financial Strain
Can Iran Strike the UK? Assessing the Real Military Threat as Conflict Escalates
Sanctioned Iranian Banker Linked to Luxury Marbella Villa Through UK Corporate Structure
Casey Bloys Navigates HBO Max UK Launch, Paramount Integration and Industry Buzz Over Netflix Meeting
Iran Conflict Sparks Sharp Turbulence in UK Mortgage Market, Reaching Pandemic-Era Disruption Levels
Major Donor Urges University of Kentucky to Reconsider Mitch Barnhart’s Post-Retirement Role
United Kingdom Moves to Lead International Effort to Reopen Strait of Hormuz
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
Senior UK Advocate Criticises Barnhart Retirement Appointment, Calls for Reconsideration
UK Finds No Evidence of Direct Iranian Threat to Britain, Says Prime Minister Starmer
Assessing Iran’s Strike Capability and the UK’s Readiness Amid Rising Tensions
NATO Unable to Confirm Iran’s Role in Strike on UK-US Base as Tehran Denies Involvement
University of Kentucky’s Youling Xiong Receives SEC Faculty Achievement Award for 2026
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
Duchess of Sussex Secures ‘As Ever’ Trademark Rights in Australia Ahead of High-Profile Visit
UK Reaffirms Security as Officials Reject Claims of Immediate Iranian Missile Threat
Rising Middle East Tensions Spark ‘Trumpflation’ Debate Over Impact on UK Households
×