Big risks, big rewards as China opens its financial sector to the world
Beijing — China’s $42-trillion financial sector is set to open up to the world like never before. To deliver on longstanding pledges and help stave off the threat of tariffs from US President Donald Trump, Chinese officials have set a June 30 deadline to ease ownership and business restrictions for banks, securities firms, asset managers and life insurers. Securities firms like Goldman Sachs and UBS have an opportunity to boost their share five-fold as they take more direct control of joint ventures, projections by Bloomberg Intelligence show. Insurers including AIA are set to cash in on their already healthy presence, while banks like HSBC Holdings and Citigroup face a steeper road ahead to build market share, but will reap juicy profits as they do so. Much as World Trade Organisation (WTO) entry in 2001 revolutionised the manufacturing industry, opening the financial sector could transform how capital is allocated and wealth managed across China. Earnings at foreign banks are set ...
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