(China Alert) Here come the Americans
- market access, rmb
-The US is set to become a major player in RMB internationalization
-Recent major reforms were the result of outcomes from last year’s S&ED
-US managers and securities firms should now expect greater access and ownership onshore
Update: Outcomes from the US-China Strategic and Economic Dialogue (S&ED) were released last night. Key developments cover two areas: China market access and the majority ownership of onshore entities. Both of these will likely have far-reaching strategic implications for the fund management and securities industries. Many of the items released in this year’s agreement are a follow-up of those in last year’s S&ED, and many of those promises have already been met by China. Z-Ben Advisors believes that there is clear intent from China to further the market opening and increase the competitiveness of its financial industries by opening up to foreign participants – primarily stemming from promises made in such bilateral talks with different countries.
As predicted in our client note yesterday, the pending RMB250bn (USD38bn) in RQFII quota for the US was just the beginning of…
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