A view of the Societe Generale stand during an expo in Shanghai. [PHOTO/CHINA DAILY]
French multinational banking group Societe Generale remains optimistic about the long-term prospects of China's financial markets despite recent fluctuations and will continue to serve as a bridge between China and international markets, a senior executive said.
“As we have a long-term commitment to China, we are committed to the country's sustainable development and are optimistic about the enormous potential of the Chinese market,” said He Xin, Societe Generale's chief country officer for China and CEO of Societe Generale (China) Ltd, the group's wholly owned subsidiary in the country.
The comments came at a time of volatility in China's A-share market.
The Shanghai Composite Index hit a multi-year low on Monday, only to jump over the next four days to close above the psychologically important 2,900-point mark at 2,910.22 on Friday, boosting the inflow of foreign capital into Chinese stocks.
“International investors still view allocation to China as an essential part of their portfolios,” he said.
The bank will continue to help foreign investors learn more about and invest in China's financial markets, he said, adding that deepening China's financial opening will help Société Générale bring more offshore clients and business transformation trends into the country and thus boost their onshore operations.
SG China has been an active player in the Chinese interbank bond market since 2009 and last year became a market maker for northbound trading of the Bond Connect program.
China's leadership has recently reaffirmed the country's commitment to opening up financial markets at a high level.
At the opening ceremony of a study session on promoting high-quality financial development on January 16, attended by provincial and ministerial officials, it was emphasized that efforts should be made to expand opening-up to increase the efficiency and capacity of allocating financial resources improve .
As this year marks the 60th anniversary of the establishment of diplomatic relations between China and France, the senior executive said he expects closer bilateral regulatory cooperation to also strengthen the development of Société Générale in China.
He said the bank sees great potential in China's green finance, wealth and wealth management markets and is considering further plans to capitalize on the growth opportunities.
“We see huge development potential in China's wealth management market,” he said, as the allocation of China's household wealth, which has grown significantly over the past 20 to 30 years, will gradually shift from the real estate market to financial products amid a slowdown in the real estate sector.
“Individuals in developed countries invest nearly 60 percent of their savings in financial products, compared to less than 20 percent in China. This means there is great growth potential here for both wealth management and wealth management products.”
He said Société Générale has adopted a B2B2C business model in its wealth management business in China, and has cooperated with Chinese banks and securities firms for distribution of wealth management products, while the bank itself designs the products, and is considering cooperation with fund management companies for product distribution Also.
Xiao Yuanqi, vice minister of the National Financial Regulatory Administration, said at a new conference on Thursday that the country welcomes foreign institutions with expertise in asset management, asset management, asset disposal, as well as climate change, green finance and sustainable operations. to carry out various forms of cooperation in China.
He wants to achieve their low-carbon goals.”
Stressing that Société Générale would continue to expand its green financial services here, he said the bank was one of the first two foreign lenders to qualify for the Carbon Emissions Reduction Facility – which allows financial institutions to finance their loans at low cost in key areas of carbon reduction – and has enabled the issuance of the first offshore green bonds by a Chinese private company.
Liu Zizheng contributed to this story.
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