China's pursuit of global finance

The swift liberalisation of China's financial market could have unintended consequences for India and the world

These columns have regularly followed the ongoing liberalisation of China’s financial sector and progress in the internationalisation of the Chinese currency (see, for instance, “Translating Economic Scale into Financial Heft”, Business Standard, December 19, 2019). Several key reforms have been put in place in recent months offering greater participation to foreign entities into China’s large and expanding banking, insurance and financial services industry.

These opportunities are well-timed as China offers returns that are unavailable in the rest of the world, particularly in the post-pandemic economic environment. Among large economies, only China will register a positive growth in gross domestic product (GDP)