ICI Urges China to Open Financial Markets

Washington, DC, June 7, 2007 - ICI President and CEO Paul Schott Stevens submitted a statement to the House Financial Services Committee expressing support for active U.S. engagement with China to address common economic challenges faced by the two nations. Stevens' statement outlines the fund industry's main goals with respect to China's financial services: helping the rapidly aging Chinese population prepare financially for retirement and making Chinese financial markets more accessible to American investors.

Background
The Institute has long supported measures to lift the barriers that prevent U.S. business from marketing services and products in China. Most recently, ICI met with Congressional staff, members of the Bush administration, and Chinese officials in preparation for the second meeting of the U.S.-China Strategic Economic Dialogue (SED).

The May 2007 meeting concluded with announcements of increased access for U.S. investors to Chinese securities markets and concrete steps toward permitting Chinese investors to diversify their holdings by purchasing foreign equities and mutual funds.

ICI Position
In Stevens' statement to the House Committee on Financial Services, ICI encouraged China to raise the ceiling on foreign ownership of Chinese asset management firms; liberalize the rules on foreign portfolio investment in Chinese markets; and liberalize local portfolio content restrictions in China.

Stevens also expressed the hope that Congress will work with the fund industry to pursue efforts to reform China's financial services sector to benefit U.S. investors and the U.S. asset management sector while also increasing options and opportunities for Chinese workers who are looking for better ways to save and invest.

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