Executives from the biggest US financial firms, including JPMorgan Chase & Co and Goldman Sachs Group Inc, are meeting with top regulators in Beijing in a sign that the trade war with the US has done little to derail China’s opening of its $43 trillion financial system.
Among those scheduled to attend on Friday at the Ritz-Carlton hotel on the city’s Financial Street will be Yi Gang, governor of the People’s Bank of China and senior officials from the China Securities Regulatory Commission, according to the meeting’s agenda, which was seen by Bloomberg.
Even as the trade war rages, China has continued to open its financial sector at an unprecedented pace, luring global banks seeking to compete for an estimated $9 billion in annual profits. While the policy has often been cast as addressing U.S. complaints that the Asian nation has been a one-sided beneficiary of trade, domestic motivations are also behind the push, said Michael Pettis, professor of finance at the Guanghua School of Management at Peking University.
“China is very determined to reform its financial markets and knows that without the major American players, it is very hard to talk about having a truly internationalized market,” he said. “It also makes sense for China to accommodate a very important source of lobbying support, especially as there’s so little in the U.S. right now.”Representatives for JPMorgan and Goldman Sachs declined to comment, while the PBOC and CSRC didn’t immediately respond to requests for comment sent outside of regular business hours.
Forcing Change
Chinese regulators can’t ignore the country’s financial-market issues. Corporate bond defaults reached a record high last year and the nation’s banks are seeing their balance sheets swell with ever more bad loans....READ MORE
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