[ T H O U G H T
L E A D E R S H I P
|
R E F I N I T I V ]
The China
investment
challenge
China poses major investment challenges, despite being
the second most attractive economy for multinationals.
When it comes to using China market data, how can
firms navigate the China Foreign Exchange Trade System
(CFETS) or get the best possible coverage, including
across commodities and ESG?
D
espite the ongoing trade
tensions with the United
States, the first quarter of
2019 saw China’s economy grow at
a steady 6.4% as the pace of indus-
trial production accelerated and
consumer demand improved.
The past year has also seen
President Xi Jinping continue to
demonstrate his commitment to
financial liberalisation.
For example, the recent easing of
restrictions on foreign sharehold-
ing ratios in domestic banks and
financial asset management com-
panies offers new opportunities for
foreign-funded banks to establish
branches and subsidiaries.
For specific markets like com-
modities, the introduction of crude
oil and iron ore futures has served
to open China’s financial sector
further.
16 // TheTrade // Summer 2019
China’s Financial Futures Ex-
change has also relaxed trading
rules by reducing margin require-
ments, cutting fees and allowing
more trading activities.
These recent developments add
further fuel to the decade-long
RMB internationalisation story,
which began in 2009 with the cre-
ation of the dim sum bond market
and expansion of the cross-border
settlement project.
As a result, according to the 2018
World Investment Report, China is
now ranked as the second largest
foreign direct investment recipient
and the second most attractive
economy for multinational compa-
nies, eclipsed in both cases only by
the US.
The China investment challenge
A challenge for those wanting to
Doug Munn, head of
Elektron Real Time, Refinitiv
seize these China opportunities
is that the region has, historically,
been less well served in terms of
both the breadth and depth of mar-
ket coverage and content.
In response, Refinitiv — already