Editor's note: Matteo Giovannini, a special commentator on current affairs for CGTN, is a finance professional at the Industrial and Commercial Bank of China, a non-resident associate fellow at the Center for China and Globalization, and a member of the Global Young Leaders Dialogue. The article reflects the author's views and not necessarily those of CGTN.

Eight financial policies have been introduced at the 16th edition of the Lujiazui Forum being held in Shanghai from June 18 to 19. Under the theme "financial opening-up and cooperation for high-quality development in a changing global economy," the forum underscores China's strategic focus on balancing economic resilience with openness amid rising geopolitical uncertainty and evolving global financial dynamics.

In the past few years, China has steadily advanced financial liberalization as part of its broader opening-up strategy. This has included expanding access for foreign financial institutions, improving the legal and regulatory framework for cross-border capital flows and promoting the internationalization of the renminbi. Far from being tactical adjustments, these moves represent structural shifts designed to upgrade China's economic model from investment-led growth to high-quality, innovation-driven development.

Financial openness plays a foundational role in this transformation. By integrating more deeply with global capital markets, China benefits from increased foreign direct investment, enhanced capital efficiency and a more diversified investor base. Simultaneously, foreign institutions gain access to one of the world's largest and most dynamic financial markets. This mutual benefit fosters a stable and transparent financial ecosystem, which is essential for long-term development.

One of the clearest signals of China's commitment to financial openness has been the growing presence of global players in its domestic markets. Foreign ownership caps in banking, insurance, securities and asset management have been lifted or relaxed in recent years, encouraging global firms such as JPMorgan, BlackRock and Allianz to establish wholly-owned operations in China. These developments not only increase competition and raise industry standards, but also bring advanced risk management practices, governance structures and innovation to the local market.

In parallel, the Chinese government has worked to enhance the facilitation of cross-border investment and financing. Programs such as Bond Connect, Stock Connect and the recently launched Swap Connect have created accessible channels for global investors to participate in China's capital markets, contributing to improved market liquidity and a more balanced investor structure. In turn, Chinese companies have more diverse options for financing through both domestic and international capital markets.

Moreover, the internationalization of the renminbi has progressed steadily. While still in its early stages relative to major global currencies, the renminbi has seen increased use in trade settlements, reserve holdings and sovereign bond issuance. Recent bilateral currency swap renewals, such as the one with Türkiye and the growing number of offshore renminbi clearing banks, reflect this trend. A more international renminbi gives Chinese companies and investors more flexibility in managing currency risks.

Yet financial openness is not simply a means of attracting capital but a mechanism that promotes greater transparency, accountability and regulatory convergence. As China participates more actively in global financial governance, it brings its perspective to discussions on systemic risk, digital finance, green finance and financial inclusion. This growing engagement enhances China's credibility and influence on the world stage, while also ensuring that domestic reforms are benchmarked to international standards.

The 2025 Lujiazui Forum is therefore an important opportunity to consolidate past achievements and chart the course ahead. At a time when the global economy is navigating inflationary pressures, fragmented supply chains and financial sector vulnerabilities, China's pursuit of high-quality development requires a stable, open and resilient financial system. This involves not just expanding market access, but also strengthening institutions, ensuring macroprudential stability and building trust with global stakeholders.

International cooperation remains key. Financial risks today are increasingly cross-border and complex, requiring collaborative frameworks for supervision, crisis response and regulatory innovation. China's participation in multilateral platforms contributes to more coordinated global solutions. Meanwhile, regional mechanisms, such as the Belt and Road Initiative's financial cooperation agenda and the establishment of yuan clearing banks in partner countries, support a more connected and inclusive financial architecture.

Looking ahead, the next phase of China's financial opening will likely focus on deepening reform in key areas such as data governance, fintech regulation and capital account convertibility. Managing this process in a balanced and sequenced manner will be critical to maintaining stability while allowing market forces to play a decisive role.

Financial openness should not be seen as an end in itself, but rather as a strategic vehicle for promoting sustainable, inclusive and innovation-led development. As China enters a new stage of economic modernization, continued openness and enhanced international cooperation in the financial sector will serve as essential foundations for future growth. In this context, the Lujiazui Forum not only symbolizes China's enduring commitment to reform but also functions as a dynamic platform for fostering deeper global engagement.

At a time of growing global uncertainty, China's steadfast pursuit of financial reform and integration stands out as both timely and indispensable.

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