After Deng Xiaoping’s Southern Inspection Tour Talks in 1992, more openings were extended to foreign banks by removing geographical restrictions for setting up institutions and by allowing foreign banks to conduct pilot operations of RMB business in Shanghai.
Learning from the failure of 1998 crises, our policies were focused on enhancing policy transmission, improving financial market efficiency through prudential practices and financial market deepening. The Government is also improving their capacity on fiscal budgeting by adopting a better debt and cash management. Prudent fiscal policy can partly be observed by gradually reducing the debt to GDP ratio, in particular the foreign debt.