According to a report on the Bloomberg News website on September 6, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said that China will accelerate the opening of capital markets and deepen reforms to attract more foreign investors.
Fang Xinghai said at a financial forum at the China International Trade in Services Fair in Beijing on the 6th that the China Securities Regulatory Commission will expand the investment scope of the Shanghai-Shenzhen-Hong Kong Stock Connect to allow foreign investors to trade more commodity futures.
Fang Xinghai said that relevant departments plan to announce the revised regulations on the management of qualified foreign institutional investors as soon as possible to enhance the "will and confidence" of these investors in investing in China. According to reports, foreign investors currently hold only 4.7% of the value of China's circulating stock market, which is far lower than the 30% or more in markets such as Japan and South Korea.
Fang Xinghai believes that the introduction of foreign capital "has great potential."
The report pointed out that China will further open its financial market this year, allowing Goldman Sachs and other US Wall Street giants to fully own their companies in China. It is hoped that these foreign companies can bring fresh investment and enhance the competitiveness of China's domestic industries.
Fang Xinghai said that the participation of foreign investors has helped China's stock market become "more rational" and made market valuations "more reasonable." He said that the so-called "short bull and bear long" phenomenon that has long plagued China's stock market is "disappearing."
The report noted that following the relaxation of relevant regulations in 2018, China last year lifted restrictions on the quota for foreign investors to purchase stocks and bonds. China is working hard to expand the use of the renminbi in international transactions while attracting more foreign capital to flow into the country.
Chen Yulu, deputy governor of the People's Bank of China, said at the forum that as more and more central banks use renminbi for foreign exchange reserves, financial assets denominated in renminbi are showing increasing appeal to international investors.
Chen Yulu said that as China continues to open up to the outside world, the renminbi can assume "greater international responsibilities" in the future.
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