Liberalization and foreign participation in China's financial markets, a Canadian perspective

by Chen, Yuan

Financial liberalization is a means to modemize a country's Anancial system and therefore provides a Mer impetus to the entire economic development. China's 20year experience of financial refoms clearly underlines the importance of building a sound and well-developed hancial system. To this end, extensive domestic and extemal financial liberalization is needed. Based on the research of literature sunounding the reforms in China's financial sector, coupled with the literature on the contribution of financial services industry to the economic development, this thesis provides a historical account of the liberalization of China's financial system, with an outlook for Mer opening of its financial markets dong the way. From Canadian perspective, this thesis first provides an examination of the importance of exporting business services to developing countries in maintaining the Canadian trade surplus. Then, the presence of Canadian financial institutions and their business activities in China's financial markets are discussed in terms of potential risks and opportunities in these markets.