BEIJING, Dec. 19 (Xinhua) -- "Entering China is a necessary part of our strategy," John Tan, Standard Chartered head of financial markets in Asia and chairman of Standard Chartered Securities China Limited (SCSCL), told Xinhua in an exclusive interview.

Earlier this month, SCSCL announced that it had been granted a license by the China Securities Regulatory Commission to commence securities business. The company became the first newly-approved wholly foreign-owned securities firm in China since the country lifted foreign ownership caps in the sector in 2020.

China's capital market has adhered to deepening reform and advancing the opening up of institutions, markets and products in other dimensions, while foreign-invested firms have seen improving convenience in business and greater connectivity in cross-border markets, Tan said.

According to Tan, the SCSCL received the set-up approval in January, completed legal entity registration in May, and acquired the license in December this year.

"We received great support from regulatory authorities during the period from applying for the approval to obtaining it. We have fully felt the Chinese government's endeavors to create a market-oriented, law-based and internationalized first-class business environment," Tan said.

Noting that the scale of China's bond market has risen to second place globally, Tan said Standard Chartered's bond business on the Chinese mainland will expand from the interbank bond market to the exchange bond market following the issuance of the license.

The correlation between Chinese bonds and European and American bonds is relatively weak, and purchasing Chinese bonds has become a necessary choice for more and more international investors, Tan noted.

"Judging from the business volume of the Bond Connect, the clients of Standard Chartered have great demand for the Chinese bond market," Tan added.

Regarding China's economic prospects, he said the research team of Standard Chartered is of the view that the Chinese economy and consumption are expected to recover next year and that the company will continue to tap into the Chinese market.

"I firmly believe that China's financial opening up will be consistently advanced and the role of the capital market serving as a hub will be enhanced. I am confident that the SCSCL will commence business smoothly," Tan said.