'Significant' results gained in China-US dialogue

BEIJING - The United States will quicken its examination and approval for Chinese financial institutions that apply to invest in the US, as part of the achievements in the fourth round of the China-US Strategic and Economic Dialogue.

Both delegations said on Friday that they were deeply encouraged by the results, while President Hu Jintao said there have been "significant agreements" in this round of talks.

The two countries reached 67 agreements in the economic dialogue, covering a wide range of issues in the macro economy, bilateral trade and investment as well as financial cooperation.

"There is significant progress in financial cooperation between the US and China," said Vice-Minister of Finance Zhu Guangyao.

According to Zhu, the US is now quickening its examination and approval process on the Bank of China and Agricultural Bank of China's applications for opening more branches in the US and the Industrial and Commercial Bank of China's initiative to take over Bank of East Asia (US).

In 2010, the Industrial and Commercial Bank of China, the world's largest lender by market value, completed the acquisition of a 70-per cent stake of Bank of East Asia Canada to expand its business in North America.

China will revise regulations to allow foreign investors to raise their stakes in joint venture securities companies and joint venture futures companies to as much as 49 per cent.

Foreign investors' ownership in securities firms is capped at 33 per cent.

"This is a signal from China's policymakers to further open financial markets," said Sun Zhe, a professor at Tsinghua University's department of international relations.

"But the two countries should further quicken the process of promoting bilateral trade and investment."

Morgan Stanley and JPMorgan Chase are among US banks that may gain more control over underwriting operations in China, the second-biggest market for share sales in 2011 after the US, according to data compiled by Bloomberg.