Unlocking Synergies: How innovation and opening-up benefit from and contribute to each other in the financial sector

KPMG

Executive summary

Amidst the profound restructuring of the global economic landscape and the rapid evolution of technological advancements, China is leveraging high-level financial opening-up and high-quality financial innovation as dual engines to propel high-quality economic development and bolster international competitiveness. A dynamic interplay exists between financial opening-up and innovation. On one hand, institutional openness is aligned with international norms to attract global capital. On the other hand, technology-driven and scenario-based innovations are transforming financial services, facilitating real economy growth and unlocking new productivity drivers. From unleashing the market potential of the “Belt and Road” initiative to upgrading cross-border e-commerce financial systems, from high-end intelligent joint investment funds to comprehensive cultural outbound services, China’s finance sector is driving innovation through opening-up, while also promoting opening-up through innovation, thereby constructing a global financial service network. In navigating risks and challenges, China adheres to a holistic approach that balances safety and efficiency, safeguarding innovative vitality with robust supervision. As this new paradigm unfolds, the synchronized progress of financial openness and innovation will not only inject strong momentum into China’s economy but also contribute valuable Chinese insights and solutions to the global community.

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