by Yang Zhijin

 

China’s financial market reforms have achieved remarkable progress, but they remain a work in progress, according to YANG Jing, Vice President of Standard Chartered Bank (China) Limited. In a recent interview with Jiemian News, Yang shared insights from his 25 years of experience in financial markets across Hong Kong, Shanghai, Beijing, and Shenzhen, highlighting Standard Chartered's role in China’s financial openness.

Jiemian News: How would you describe the progress of China’s financial market opening?

Yang: China’s financial opening has been a steady, multi-phase journey. Over the past two decades, we’ve seen significant milestones. Early on, the focus was on building a robust foundation with the introduction of tools such as forex derivatives and bond futures. These efforts created the framework for deeper reforms.

Since 2016, the emphasis has shifted toward enhancing the bond market, with landmark developments such as the Bond Connect scheme and the inclusion of Chinese bonds in global indices. More recently, initiatives like Swap Connect are making the market even more accessible and transparent.

It’s essential to view this process as dynamic and continuous. Every new step introduces opportunities for improvement and innovation, and Standard Chartered has been participating in and contributing to these developments.

Jiemian News: As a bank deeply involved in these reforms, how does Standard Chartered align its strategy with China’s financial opening?

Yang: At Standard Chartered, we see ourselves as a partner in China’s journey of financial reform. Our approach is twofold. First, we support regulatory initiatives by leveraging our global expertise in areas such as product innovation and risk management. Second, we tailor our services to meet the evolving needs of our clients, both domestic and international.

For instance, we’ve worked closely with Chinese regulators and institutions to develop cross-border financing solutions and expand access to international markets. On the other hand, we help foreign investors navigate China’s financial landscape, whether through facilitating bond market entry or enabling them to issue Panda Bonds.

Jiemian News: You’ve spent a significant part of your career in Shanghai. What’s your view of its role as a global financial center?

Yang: Shanghai has made remarkable strides in becoming a global financial hub. The city boasts world-class financial infrastructure, with institutions like the Shanghai Stock Exchange and the China Foreign Exchange Trade System anchoring its ecosystem.

More importantly, Shanghai acts as a vital bridge connecting China with global markets. From pioneering initiatives like Shanghai Gold and Shanghai Crude Oil futures to facilitating cross-border capital flows, the city is at the forefront of innovation and international collaboration.

Jiemian News: How does Standard Chartered adapt to the evolving needs of its clients in China?

Yang: Many of our clients are dynamic enterprises operating in sectors aligned with China’s strategic priorities, such as technology and green energy. As they expand globally, we provide tailored solutions for overseas market entry, including financing and regulatory advisory.

On the institutional side, we’re facilitating two-way engagement. For example, we support Chinese institutions seeking diversification abroad while also helping international institutions tap into China’s market. Our work with Southbound Bond Connect and Panda Bond issuances are key examples of this dual focus.

Jiemian News: What do you see as the future opportunities in China’s financial market?

Yang: The pace of reform continues to generate new opportunities. For example, we’ve obtained a Type A bond underwriting qualification and participate in innovative areas such as credit risk mitigation tools. Treasury Bond Futures, in particular, are becoming an increasingly valuable resource for risk management.

Looking ahead, we’re keen to deepen our involvement in areas like repo market reforms and cross-border financing mechanisms. The ongoing refinement of China’s financial ecosystem aligns well with our strengths and ambitions.

Jiemian News: What is your outlook on the RMB exchange rate and the broader financial landscape?

Yang: Exchange rate dynamics are influenced by many factors, including geopolitical developments and global monetary policy shifts. Instead of trying to predict specific movements, we encourage clients to focus on pragmatic risk management strategies.

Overall, I’m optimistic about the direction of China’s financial markets. The combination of increased openness, regulatory refinement, and market maturity offers vast potential for growth and collaboration. At Standard Chartered, we’re committed to thriving alongside an open and evolving China.