Fitch Ratings

China Market Reforms Lift Securities Growth Prospects

Capital markets in China remain underdeveloped when compared with global peers, despite rapid progress over the last decade. Heavy reliance on indirect finance, evolving regulatory and legal frameworks, and visible government interventions highlight capital markets' weakness in terms of depth and breadth. Fitch Ratings believes ongoing regulatory reforms could strengthen the capital markets framework and thus sustain further development, improving financial system stability and capital mobility.