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SHANGHAI: China will encourage foreign capital to participate in its financial markets and may allow foreign-funded financial institutions to go public in the country when “conditions are ripe”, local media quoted a former finance minister as saying on Saturday.

Such moves would be in line with the country’s opening up of its financial industry, Lou Jiwei told the Global Asset Management Forum in Beijing, according to the 21st Century Business Herald newspaper.

At the same event, Cao Yu, vice chairman of the China Banking and Insurance Regulatory Commission, was quoted by the Shanghai Securities News as saying 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.

China’s yuan firms on encouraging home price data and improved risk sentiment

China has been stepping up efforts to woo foreign companies and investors to aid an economic recovery after the dismantling of its zero-COVID policy late last year. It has sped up fund license approvals for foreign asset managers in recent months.

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

“We will also continue to cooperate with the financial regulatory agencies of other countries to jointly prevent and resolve systemic risks in the global financial system and maintain the stability and prosperity of the global financial market,” he added, according to the newspaper.

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