BEIJING, Aug. 5 (Xinhua) -- China vowed to deepen its
financial system reform and promote more efficient financial intermediation in
support of domestic demand, according to a fact sheet released here on
meet the commitment, China would promote interest rate liberalization and
consumer finance, said the economic track joint fact sheet of the first
U.S.-China Strategic and Economic Dialogue (S&ED).
It said China would accelerate the allocation of QFII
quotas to $30 billion and continue to allow foreign-invested banks incorporated
in China that meet relevant prudential requirements to enjoy the same rights as
domestic banks with regard to underwriting bonds in the inter-bank market.
China would gradually increase the number of
qualified joint-venture securities companies that can participate in A-share
brokerage, proprietary trading and investment advisory services subject to the
condition of meeting relevant laws and regulations.
The country would also support qualified overseas
companies to list on Chinese stock exchanges through issuing shares or
depository receipts and continuously support qualified Chinese companies to be
listed abroad, including in the United States, said the fact sheet.
From the U.S. side, the country would pursue
comprehensive reform of financial regulation and supervision to create a more
stable financial system and to help prevent and contain potential future crises.
Regulation and supervision would be strengthened to
ensure that all financial firms that pose a significant risk to the financial
system will be well regulated, major financial markets will be strong enough to
withstand system-wide stress and the failure of large institutions, and the
government has the tools it needs to respond rapidly and effectively when
problems arise, the fact sheet said.
The United States pledged to continue to have strong
oversight of the Government Sponsored Enterprises (GSEs). Through Congressional
action, the country remained committed to ensuring that the GSEs were able to
meet their financial obligations, it said.
The country was committed to undertaking a process of
exploring the future of the GSEs, including through seeking public input, and
the U.S. government resolved to report to Congress and the public by S&ED
In the joint fact sheet, China and the United States
pledged continued close communication and coordination to promote financial
stability and would work together to expedite the financial sector reform, to
improve financial regulation and supervision, and to promote greater financial
market transparency, so as to make their financial sectors more robust.
"We recognize the importance of ensuring sound
regulation in our own countries and globally," said the fact sheet.
The two countries were undertaking IMF Financial
System Assessment Programs (FSAPs) and would complete them in a timely manner,it
Both countries would continue to promote convergence
towards a single set of high quality global accounting standards and would
continue discussions on financial reporting matters.
"The United States and China welcome continued
dialogue between the bilateral competent authorities on the oversight of
accounting firms providing audit services for public companies in the two
countries based on mutual respect for sovereignty and laws," it said.
The two countries would also conduct technical
exchanges on the development of private pensions, and would share experiences
and strengthen cooperation with regard to improvement of insurance regulation.
The first S&ED was held in Washington, D.C from
July 27 to 28. The mechanism was jointly launched by Chinese President Hu Jintao
and US President Obama during their meeting in April in London as a way to show
elevation of the importance of China-U.S. cooperation under the new historical
Full text: The First U.S.-China
Strategic and Economic Dialogue Economic Track Joint Fact
Special Report: First Round Sino-U.S.
Strategic and Economic Dialogue