Well-known Chinese news site Sohu recently reported that Zhu Min, the former Deputy Managing Director of the International Monetary Fund (IMF) and current Director of Tsinghua University’s National Institute of Financial Research, delivered a speech on financial openness at a global finance forum conference held in Beijing. Zhu emphasized that at the core of the openness is the establishment an internationalized Chinese financial market. International investments currently have a share of 1.26 percent in China’s banking market, a share of 1.15 percent in China’s stock market, a share of 2.44 percent in China’s bond market, and a share of 6.1 percent in China’s insurance market. At the same time, China’s debt level has reached 220 percent. Japan suffered a financial crisis at 220 percent, Thailand’s financial market crashed at 180 percent, and the United States had its financial crisis at the debt level of 180 percent. China’s loan efficiency dropped 75 percent in the last five years. He called for opening up the Chinese financial market in order to improve the domestic financial system with healthy competition.
Source: Sohu, May 19, 2018