Business / Economy

World to benefit from China's financial opening

(Xinhua) Updated: 2014-03-27 14:21

BEIJING - Commodities investor James B. Rogers said "the sooner the better" while commenting on Chinese Premier Li Keqiang's latest remarks about opening China's capital market wider to the outside world.

"It will be good for China and for the world," Rogers told Xinhua on Wednesday.

World to benefit from China's financial opening

Broad changes coming in finance, premier says

Shanghai FTZ sees more liberalization

Li said Tuesday that China's capital market will open wider to investors from both home and abroad, with improved laws and policies for early warning and management of risks and harsher punishments against illegal operations like false statements, insider dealing and market manipulation.

"I can go on my computer or telephone and do business instantly all over the world -- but not in China which is the most successful country of the past 30 years," said Rogers.

"The RMB might replace the US dollar someday, but it will take a while so the sooner it starts the better. It cannot even begin when parts of China's markets are closed," he said.

Opening the capital markets wider to overseas investors will also relieve some of the inflationary pressure in China, he said. "The money trapped inside China has to be spent somewhere. It will help once money can come and go freely."

China launched several pilot programs on financial liberalization in 2013, and more are scheduled for this year.

The Shanghai Free Trade Zone (FTZ), established in September, has made key steps including easing cross-border use of RMB, liberalizing interest rates on foreign currency loans, facilitating offshore financing and outbound investment.