Author: Fan Gang, President of CDI

Editor’s Note: On the occasion of GFCI 20 launch, Prof. Fan Gang, President of CDI, said that capital account liberalization is most needed to further enhance the overall competitiveness of China's financial centers in an exclusive interview with CBN.

Capital account liberalization is most needed to further enhance the overall competitiveness of China’s financial centers. The internationalization of China's capital market and RMB will encourage more international financial institutions to carry out RMB related business in cities across China.

The introduction of the “51 financial reform regulations” and “financial reform 40 regulations” has accelerated RMB capital account convertibility and RMB internationalization. Overseas financing and foreign currency business which are based on free trade account cross-border interbank deposit and other innovative businesses have started. However, since the QDII2 have not been launched and capital account has not been fully opened yet, a gradual approach is needed to avoid risk. International financial centers also need to increase RMB trading, settlement and other business to achieve more financial transactions so as to maintain their comprehensive competitiveness as RMB has been incorporated into the SDR currency basket on October 1.

In addition, there are financial centers at both international and regional level. Regional financial centers also need to promote the adjustment of financial policies to achieve further development.