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Financial Services Likely to Be China's Next Major Economic Growth Area
Financial services are likely to be one of the major economic growth areas for China in the next few years, according to Merrill Lynch, America's leading investment bank.
Winthrop Smith, chairman of Merrill Lynch International, made the statement recently in Guangzhou, while speaking at a conference of economic advisers to the governor of the Guangdong Province in south China.
"Financial services are growing strongly around the world and China already has a strong foundation with efficient and liquid markets," he said.
According to Smith, "investors are paying more and more attention to China, and are excited by the prospect that China's domestic markets might open up to foreign participation."
He noted that the Shanghai B share index was up 62 percent for the first nine months of the year, making it the best performing market in the world.
Noting that investors around the globe are seeking international diversification for risk reduction and higher profits, he said China should take advantage of the trend by allowing foreign investors to buy Chinese equities through mutual funds and other means.
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