The Chinese State Council announced they would “encourage overseas financial institutions and funds” to support the domestic market.
“It is necessary to further expand the high-level two-way opening of the financial industry, encourage overseas financial institutions and funds to enter the domestic financial market, and enhance the vitality and competitiveness of China’s financial system,” the full statement from the Financial Stability and Development Committee of the State Council issued on Sunday reads.
The statement came after Friday reports that Trump administration officials are considering ways to limit US investors’ portfolio flows into China, including de-listing Chinese companies from American stock exchanges and preventing US government pension funds from investing in the Chinese market, with one of the options being considered including the blocking of all US financial investments in Chinese companies, CNBC reported.
“The administration is not contemplating blocking Chinese companies from listing shares on US stock exchanges at this time,” Monica Crowley, assistant US Treasury secretary for public affairs, said in a statement. White House trade advisor Peter Navarro also called the reports “fake news,” saying in an interview with CNBC that “over half of it was highly inaccurate or simply flat-out false.”
The statement also came at a crucial time before the restart of talks between the world’s two biggest economies on October 10 in Washington. China’s Global Times said Sunday that possible investment curbs are the latest US attempt to decouple from China, which will have “significant repercussions.” US President Donald Trump on Monday said the US will insist on its hard stance, adding “we are winning and we will win.”