THE country should continue to open its financial market in order to increase its global competitiveness, Shanghai Securities News reported yesterday citing an essay written by the central bank governor.

People’s Bank of China Governor Yi Gang wrote in the essay that China’s financial markets are not deep or broad enough and that they needed to be better integrated with international markets. Business conditions also needed to be improved for foreign financial institution involvement.

China needs to “promote all-around opening of the financial industry ... and continue to relax shareholder restrictions on foreign financial institutions,” Yi wrote, according to the newspaper.

Policymakers should “ensure previously announced opening measures are implemented as soon as possible,” Yi wrote.

Yi also said China should deepen exchange rate reform, including allowing the market to have a greater say in setting the rate, and steadily push forward capital account convertibility.

A trading link between the Shanghai and London stock exchanges should also be launched “as soon as possible,” Yi wrote.

The China Banking and Insurance Regulatory Commission removed limits on foreign ownership of its banks and bad-debt managers last month, pushing ahead with the plan to open its financial system despite rising Sino-U.S. trade tensions.

China earlier this year announced it would allow 51-percent foreign ownership of brokerages and life insurers, with that cap to be removed by 2021. Ownership curbs were also to be eased in other financial industries.

Most of the opening measures are expected to take effect by the end of this year.(SD-Agencies)