China and WTO Liberalization of the Securities Industry: Le Choc Des Mondes or L'Empire Immobile?

Abstract:     
Despite nationalistic and protectionist sentiment and fears about a destabilizing Chinese-style "Big Bang" liberalization of China's capital markets, Beijing has demonstrated full compliance with China's 2001 WTO commitments on foreign investment in the securities and fund management service sectors. Indeed, in several ways, the PRC has gone beyond its WTO promises. The commitment to liberalization has come about not just by pressure from interested foreign financial firms but also by Chinese policy makers and industry participants who understand (i) that China's own capital market is a key mechanism supporting efficient capital allocation and company monitoring and (ii) foreign capital, know-how and global exposure must play a role in the development of the securities sector that serves the capital markets.

Number of Pages in PDF File: 35

Keywords: China, WTO, securities regulation, capital markets

JEL Classification: F10, F23, F30, G15, G24, K22, K33, N25, P31

Accepted Paper Series