Observers welcome moves toward liberalization

The opening-up of China's financial markets could be one of the next major global trends, according to experts.

It could result in an influx of trillions of dollars from foreign investors, shifting the balance of the global financial system.

Chinese authorities have taken an incremental approach to the opening-up process because of the risk of violent capital flows destabilizing the economy.

Policymakers have always wanted to avoid a repeat of the Asian financial crisis of the late 1990s and those that have affected other emerging markets, such as Russia and some Latin American countries.

Now, there are clear signs that China is stepping up momentum to open up its financial sector, with next year set to be a landmark.

On Jan 1, financial authorities will remove limits on foreign ownership of futures companies operating in the country. This will be followed by the removal of caps on foreign ownership of mutual fund companies on April 1 and on securities companies on Dec 1.