Opportunities and prospect in China for Islamic Finance

Islamic finance in the sights of Asia it is even more favored China’s huge market and development prospects. Preference for the Middle East oil capital investments in banking, hotels and energy, long-term stable income sectors. Middle East oil capital of China’s financial industry and real estate investment is only in recent years began. In early 2006, Balin Sha Mill Bank and China CITIC Group, set up a 100 million U.S. dollars in the Islamic fund, solely on the investment in Chinese real estate. In June 2006, Dubai Damak investment of about 2.73 billion U.S. dollars Tanggu District, Tianjin Binhai Development Project. In 2006, the Global Industrial and Commercial Bank of China IPO (initial public offering), attracted global investors in a high-profile pursuit of separate ways. Shateawa Lide Prince spent two billion U.S. dollars subscribed ICBC shares.

After the Bank of China’s international placement in Talal has come up with 2 billion U.S. dollars Bank of China shares subscribed. In the process of issuing new shares in banks, many of the oil capital of Islam have made a great single. The future of a large number of Islamic capital should be devoted to China, which is an excellent opportunity to attract petro-dollars.

In Hong Kong in October 2007 was first introduced in Hong Kong in the development of Islamic financial services. HSBC and Hang Seng Bank Hong Kong first response, announced the launch of Islamic funds on their own, and valet. While Islamic finance in Hong Kong was relatively late start, there are still experts said that if Hong Kong can invest in the Mainland as a selling point towards the Islamic petro-dollars, then, there are still attractive. But to the establishment of Islamic financial center, first and foremost condition is to educate investors, so that a clear understanding of the contents of Islamic financial products and features. 

Hong Kong Government to nurture or to introduce more Islamic scholars to develop a set of rules for Islamic finance in Hong Kong, but also more with the Islamic countries for cultural exchanges, build mutual trust relationship.

Islam was introduced into China more than 1,300 years of history. China’s population to Islam, there are more than 3,000 million, mostly concentrated in Xinjiang, Ningxia, Gansu, Qinghai, Yunnan and other western regions, suitable for the Arab Bank and the Islamic financial development. China also has a number of scholars who are familiar with Islamic law and Islamic economic thinkers.

In the march of the Islamic financial sector, China can learn from Japan’s approach, sparked off a wave of Islamic finance craze and research in Islamic finance teachings, the use of foreign banks to enter the international capital markets in the Middle East, and even when conditions are ripe for the issuance of Islamic stocks, bonds from the international capital market financing.

 

Prospects

Thanks to its rich oil and gas resources and huge amounts of money, the Islamic financial industry in the ascendant, the traditional banks to Islamic finance has shown an unprecedented interest. However, the Islamic country’s financial regulatory agencies in different directions have their own religion steering committee. Islamic Bank to make each new product approval must be consistent with their respective steering committees or teachings of religion scholar’s consultation. Sometimes, the same kind of financial products may be a committee to another committee refused to be accepted, it is because different schools of thought on the principles of Islam have different interpretations. Therefore, it is necessary to develop uniform methods and standards, which is the sustainable development of Islamic financial services industry lays.

Source xinhuanet

One thought on “Opportunities and prospect in China for Islamic Finance

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