Financial companies outside China

The Chinese president Xi said on Tuesday that China would broaden market access for foreign financial services companies. There have been several financial services companies operating in the Chinese mainland, including HSBC, Goldman Sachs. These foreign financial services companies have been focusing on financial services that have to do with (financial) activities in foreign countries, their potential consumer sizes are not as large as the Chinese companies', this will not increase the competition in the Chinese financial sector. There are restrictions to these foreign financial services companies that limit the activities for these companies in China. Moreover, the financial services companies do not share the same financial network with the Chinese financial services companies (including the Chinese companies). The transaction costs for Chinese clients to do businesses with the foreign financial services companies are larger than to do businesses with their local companies. If the Chinese government were willing to reduce the limitations on these foreign financial services companies, the level of competitions in the Chinese financial market would increase significantly. In addition, the many financial services would be introduced to China, the skilful workers in the sector will transport across borders as well, this would improve the services or lower the wages in the sector or both.