Dr. Zhu Min: 'In the past 15 years, I think reform has lagged and the Chinese financial sector has not caught up with the growth in the economy. Foreign banks still only have a very small share of the financial sector and this means we are not open enough.'
'There are also many other reasons why it is critical for China to continue with financial reforms. Firstly, for quality-driven growth, China needs a healthy financial sector to manage risks and improve the efficiency of resource allocation. That is very important.
Secondly, China needs to change the structure of the financial sector. Currently, the banking sector is dominant, while the equity market is relatively weak. With a bank-denominated system, firms live on loans and there aren't a diversified range of financing options or capital market structures to service the corporate sector. Therefore, it's obvious that for long-term growth, China really has to change this structure.
Finally, further reforms are absolutely necessary because there's many Chinese investors are looking for opportunities to allocate overseas. Therefore, it is critical to bring foreign capital and players into China to move Chinese capital into global markets.
For all the above I think that reform is a must.'
Dr. Axel Weber: 'Reform is absolutely the right way forward for China to build the deep and liquid capital markets that it needs and, having worked with regulators in China, I am confident they are absolutely committed to delivering a reform agenda.
The Stock and Bond Connect systems are excellent examples of the reforms needed and, over time, we're expecting further steps to both integrate China's markets more closely with the international financial system and develop the infrastructure needed for onshore capital markets.'