A deeper financial relationship requires businesses to gain experience in local markets so that they can recognise and benefit from investment opportunities. This takes time. Businesses also need to understand the regulatory environment, which continues to evolve in both countries.
Over recent years, the Chinese authorities have taken steps to liberalise interest rates and parts of the capital account, although the financial system is still highly regulated. Substantial capital controls remain in place. The Chinese currency does not float freely, notwithstanding the gradual widening in the trading band over recent years.