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The Securities Industry and Financial Markets Association (SIFMA) issued the following statement after the third meeting of the U.S.-China Strategic Economic Dialogue (SED) concluded in Beijing, China today.
“We are strong supporters of the U.S.-China SED, and believe continuing engagement is in the best interests of both countries,” said Marc Lackritz, SIFMA president and CEO. “We welcome China's implementation of SED II commitments to lift the joint venture moratorium on broker-dealers and to expand the scope of joint venture activities. We believe these steps, albeit incremental, will help modernize China's capital markets.”
“We are also encouraged with China's SED III commitment to complete a study with recommendations on adjusting the extent of foreign equity participation in the securities sector, and we urge China to move expeditiously to implement this commitment,” added Lackritz. “We believe such ownership limitations should be reduced and eventually removed. The world-class expertise that global financial services institutions bring will help to expand the availability of capital and provide Chinese consumers greater access to a range of financial services products not currently available.”
“Allowing broader foreign participation will create incentives and opportunities for niche players to enter the market, expand into underserved regions and offer additional products that meet the needs of consumers and investors. We commend Secretary Paulson and Vice Premier Wu Yi for their leadership and dedication to the SED.”
