China-U.S. Strategic Dialogue
U.S. Treasury Secretary says China needs to quicken reforms of financial sector
Source: Xinhua Daily
U.S. Treasury Secretary Henry Paulson said at the Shanghai Futures Exchange Thursday that China had made strides in reforming its financial sector but needed to accelerate the process.
In his speech to Chinese officials and business leaders at the Shanghai Futures Exchange, Secretary Paulson said, “China’s banking, securities and insurance sectors have all made substantial progress over the last ten years.
“China has recapitalized four of the top five state-owned banks and, more importantly, welcomed strategic investors and completed IPOs.”
Secretary Paulson urged China to quicken the pace of economic reform.
He warned that China’s underdeveloped financial markets were putting the country in a difficult position as it tries to balance a centrally administered economy with a market-driven economy.
“China is faced with challenges in four areas: the capital market, institutional market and asset management, banking system and its regulatory regime.”
Secretary Paulson encouraged China to loosen restrictions on foreign participation in the domestic capital market and health insurance sector, allowing Chinese banks to sell controlling stakes to foreign investors.
“China has come a long way in developing its capital markets, but the journey is not complete,” said Secretary Paulson.
