PBOC Discusses Commitment to Ease of Investment. The People’s Bank of China (PBOC) continues Prime Minister Li Qiang’s promise to further open his country’s economy to foreign investors.
The monetary controller met with a number of representatives of foreign institutions such as JPMorgan Chase & Co., HSBC Holdings Plc., Deutsche Bank AG, BNP Paribas, UBS Group AG and Tesla to explain the policies being taken.
For the record, foreign companies’ trust in China has declined due to the country’s tensions with western countries. Not only that, there are concerns regarding the ambiguity of regulations in the Bamboo Curtain country.
According to a survey published in early 2023 by the American Chamber of Commerce in China, the country is no longer a top investment priority for most US companies. The first incident in the past 25 years.
China itself has increased its attractiveness both in the real economy and in the market. This is done in line with the authorities’ efforts to increase their confidence amidst the weak economy in 2023, namely concerns about an economic slowdown that have become widespread.
To revitalize the private sector and attract foreign investment, the Bamboo Curtain country’s top economic planner is now establishing a special department to encourage private sector growth. In July 2023 the Communist Party also promised to treat these companies the same as state-owned companies.
China’s capital markets regulator also recently promised more measures to support trading on exchange floors. They said they had met with investors including BlackRock Inc. and Bridgewater Associates to hear their suggestions.
Foreign ownership of China’s equity and debt has fallen by around 1.37 trillion yuan, or around IDR 2.8 quadrillion from its peak in December 2021 to the end of June 2023.
PBOC Discusses Commitment to Ease of Investment. The PBOC last week also cut the amount of cash lenders must hold for a second time in 2023. The move will help banks support government spending and boost economic growth.