China and WTO Liberalization of the Securities Industry: Le Choc Des Mondes or L'Empire Immobile?
Nicholas Calcina Howson
University of Michigan Law School
January 28, 2009
Asia Policy, No. 3, p. 151, January 2007
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
Date posted: January 29, 2009 ; Last revised: February 27, 2009