“Improve the market interconnection mechanism for GDR, CDR issuance, etc., promote the implementation of the reform of the overseas listing system of enterprises, and support various enterprises to go public overseas in accordance with laws and regulations.”
“Improve the market interconnection mechanism for GDR, CDR issuance, etc., promote the implementation of the reform of the overseas listing system of enterprises, and support various enterprises to go public overseas in accordance with laws and regulations.” On November 5, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, at the Fifth Hongqiao The International Economic Forum said at the sub-forum of “High-quality Opening of China’s Capital Market”.
Fang Xinghai said that in recent years, the high-level institutional opening up of the capital market has been gradually implemented, which has effectively promoted the high-quality development of the capital market.
Fang Xinghai pointed out that 12 foreign-controlled or wholly-owned securities, fund and futures companies, including JPMorgan Chase, Goldman Sachs, Nomura, and UBS, have been approved in succession, and 3 foreign-funded banks including Standard Chartered Bank have obtained funds from their Chinese subsidiaries. Managed Qualifications. Bridgewater, BlackRock and other foreign private equity funds have successively established 38 wholly-owned subsidiaries. “Foreign fund management institutions have brought global asset management models, investment concepts, investment strategies and risk control experience to China, which has played an important role in enriching the pattern of my country’s fund industry.”
In terms of expanding cross-border investment and financing channels, Fang Xinghai pointed out that as of the end of September this year, the total net inflow of funds from Shanghai and Shenzhen Stock Connect was 1.68 trillion yuan. In addition, 5 A-share companies have issued Global Depositary Receipts (GDRs) in the UK and 7 A-share companies have issued global depositary receipts (GDRs) in Switzerland, with a cumulative financing of more than US$8.5 billion; there are currently 3 A-share companies that are issuing GDRs, 16 of them Companies have announced that they are going to issue GDRs. The overseas issuance of GDRs will effectively promote the international operation of A-share listed companies.
In terms of international product opening, according to Fang Xinghai, 11 China-Japan ETF interoperability products, 6 Mainland and Hong Kong ETF interoperability products have been launched, and ETF interoperability products between China and Singapore will be launched soon. For the 7 futures varieties such as crude oil, PTA and iron ore that have been opened to foreign investors, foreign investors account for 10-20% of all transactions and positions of each variety, which effectively improves the market operation of these varieties. quality. Support overseas high-quality enterprises to issue panda bonds on the exchange bond market, and a total of 78 panda bonds have been issued, with an issuance scale of 118.2 billion yuan.
Regarding the next step, Fang Xinghai introduced how the CSRC will continue to unswervingly promote the high-level opening of the capital market from three aspects.
In terms of how to attract more domestic and foreign medium and long-term funds with the high-quality development of the capital market, Fang Xinghai said that he will unswervingly introduce more foreign institutional investors of various types to promote the development of the institutional investor team in my country’s capital market.
“From a structural point of view, allocation-based and long-term funds have maintained a net inflow since the beginning of this year. This shows that foreign capital is optimistic about the long-term investment value of A-shares, and it also reflects foreign capital’s confidence in the long-term improvement of China’s economy.” According to Fang Xinghai, before this year In the past 10 months, 289 companies in Shanghai and Shenzhen have been listed on IPOs, and a number of technologically advanced and market-recognized technological innovation companies have entered the capital market, providing domestic and foreign investors with more diverse investment opportunities.
In terms of how to welcome high-quality overseas capital market institutions to invest in China, Fang Xinghai pointed out that in terms of scale, my country has formed the second largest stock and bond market in the world, and has a good foundation for long-term and stable development. The attractiveness of companies, futures companies and other institutions continues to increase. “We will conscientiously implement the spirit of the 20th National Congress of the Communist Party of China, further improve the institutional framework for the opening of the capital market, accelerate the implementation of various opening-up measures, and attract and gather more outstanding international institutions and talents to participate in my country’s capital market.”
In terms of how to insist on promoting the high-level institutional opening of the capital market, Fang Xinghai believes that promoting the construction of a market-oriented, legalized, and international business environment is the key to institutional opening.
“We will continue to improve relevant institutional arrangements, further facilitate cross-border investment by domestic and foreign investors, and better support the development of cross-border financing of enterprises. We will improve market interconnection mechanisms such as GDR and CDR issuance, promote the implementation of the reform of the overseas listing system of enterprises, and support various Such enterprises are listed overseas in accordance with laws and regulations.” Fang Xinghai further stated that we will strengthen the pragmatic cooperation between the mainland and Hong Kong capital markets, expand the stock subject of Shanghai-Shenzhen-Hong Kong Stock Connect, include more A-share listed companies, support Hong Kong’s launch of RMB stock trading counters, support And cooperate with the Hong Kong side to launch treasury bond futures in Hong Kong to achieve complementary advantages and coordinated development of the two places.
The author of this article: Sun Yan, source: The Paper, original title: “Fang Xinghai: Promote the implementation of the reform of the overseas listing system of enterprises, and support various enterprises to list overseas in accordance with laws and regulations”
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