The second biggest economy in the world is now making itself more open to the
public than ever. Huge news broke recently when it was announced that China will
be opening its investing to the rest of the world. Word from Beijing has come out,
saying that it will be giving permission to foreign companies to own Chinese banks
as well as investment firms.
The cap on the ownership amount will be 51%, no small number. As for the official
time table of when the investing will be available, all that was being said was that it
will be “soon”, according to Zhu Guangyao, the vice minister for finance in China.
How big of a move is this? Well consider this…China’s financial sector has over $33
trillion in assets, making it the second biggest market in the world. It should also be
noted that the market in China is ever growing with no signs of slowing down.
It will be fascinating to see what happens with all of these recent developments.
With so much business that flows through China as it is, this seems to be the right
move for them. Opening up their investing to more countries should, in theory, allow
them to grow in ways that haven’t been reached before. Keep on the lookout for
more news surrounding this development.
