Financial market reform on track

Deutsche Bank, which opened its seventh office in China - a sub-branch in the Pilot Free Trade Zone in Shanghai - on May 8, has a positive outlook on China's economic growth and the government's commitment to market liberalization. In fact, at 7.8 percent, our (Deutsche Bank's) economic outlook for China's GDP growth for 2014 is at the higher end of the consensus.

We also believe that reforms in the financial market, in which the bank plays a large role, are likely to occur more quickly than the broader market expects. This will have profound implications for China's financial system and its participation in the global economy.

The Chinese government's recent financial market reforms should be applauded. They include accelerating the opening up of the capital account and domestic financial markets through initiatives such as the Renminbi Qualified Foreign Institutional Investors and the recent joint in-principle approval by the China Securities Regulatory Commission and Securities and Futures Commission of the pilot Shanghai-Hong Kong Stock Connect program, which is aimed at establishing mutual stock market access between the Chinese mainland and Hong Kong.