Promoting China’s Financial Market Reform and Innovation with Opening Policies

Reform and opening are mutually reinforcing. Reform inevitably requires opening and vice versa. Opening consists of two levels. The first is to attract foreign institutions and encourage domestic institutions to go overseas. The second is to develop domestic financial markets based on the development pattern of mature financial markets and adapt to international market rules and practices. This will ensure ultimate integration with the international financial market. The second level is actually a higher level of openness. China’s financial market was established and developed after reform and opening was launched in 1978. Adhering to a market-oriented development philosophy and international patterns are the drivers for China’s financial market prosperity. The first level of opening will not be successful without the second. And promoting the first level will propel the second level.