HSBC senior executive Peter Wong said that China should lessen regulations so foreign financial institutions can get licenses and raise deposits in China more easily.

HSBC Asia Pacific operations deputy chairman and chief executive Peter Wong also said that China needs to work on its corporate governance and investor protection to control systemic risks during a financial summit in Shanghai.

“We really don’t want to have another situation…similar to the Lehman crisis in China,” Wong said, citing the Lehman collapse which played a major role in the global financial crisis of 2008.

The second largest economy in the world has sped up the opening of its giant financial industry despite the ongoing trade war with the United States. In early October, regulators announced a timetable to open brokerage, futures, and mutual fund sectors to foreign investors next year.

Wong said that HSBC gives great importance to foreign ownership rules. The multinational investment bank also owns insurance, brokerage ventures, and asset management in China, aside from its banking business.

However, he said that other regulators need to be relaxed, such as allowing HSBC to expand its insurance business to more areas in China.

He cited that another problem is that “it’s very difficult for foreign banks to get deposits in China” because of strict requirements, and added that in turn China must “figure out a way” to assist them.

“We’ve been trying for a number of years. Now we’re developing, we’re increasing our share, but the journey is not easy,” Wong said.

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