Original title Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission: In the first seven months of this year, the number and amount of A-share IPO financing ranked first in the world, and the three major measures continue to promote the two-way opening and in-depth development of the capital market!
Wen Fang Zhiyue
Introduction: Talking about the relevant measures of the China Securities Regulatory Commission for the next two-way opening of the capital market, Fang Xinghai said that the China Securities Regulatory Commission will coordinate development and safety, fully support and stabilize the economic market, and launch more vigorous and in-depth opening measures. Promote the high-quality development of the capital market.
On September 2, the 2022 China International Finance Annual Forum was held in Beijing. Fang Xinghai, vice chairman of the China Securities Regulatory Commission, attended and delivered a speech entitled “Unswervingly Promote Two-way Opening of the Capital Market to Help Build a New Development Pattern”.
In his speech, Fang Xinghai, on behalf of the China Securities Regulatory Commission, extended warm congratulations to the holding of the China International Finance Annual Forum, and discussed his views on the issue of deepening the high-level opening of the capital market, and made it clear that in the next step, the China Securities Regulatory Commission will Coordinate development and security, fully support and stabilize the economic market, launch more vigorous and in-depth opening measures, and promote the high-quality development of the capital market.
Fang Xinghai first stated in his speech that since the beginning of this year, in the face of the impact of multiple factors such as the Ukraine crisis, the Federal Reserve’s interest rate hike, and repeated domestic epidemics, the China Securities Regulatory Commission has continued to make efforts to stabilize expectations, funds, and market behavior, and timely and decisive measures have been taken. a series of measures. In the first seven months of this year, a total of 178 IPOs were listed on the Shanghai and Shenzhen Stock Exchanges, raising a total of 345.9 billion yuan, both in terms of quantity and amount. ranking first in the world. Refinancing totaled 382.5 billion yuan, maintaining a high level.
While the functions of the capital market can continue to be exerted, Fang Xinghai said frankly that the CSRC will work with relevant parties to strengthen the joint supervision of the futures and spot markets, strictly prevent excessive speculation, and effectively prevent and control the risk of continued rising prices of basic industrial products such as thermal coal and crude oil. It has successfully dealt with the spillover risk of the extreme “short-squeezing” market of nickel futures in the international market on the domestic nickel futures market. The CSI 1000 stock index futures and options were launched, and the trading of the stocks of “specialized, refined, and new” listed companies was activated. The futures market maintained a stable operation, effectively contributing to the overall situation of ensuring supply and stabilizing prices.
“The capital market has withstood the severe test, with active transactions and good functions, playing an important role in stabilizing the macroeconomic market and social expectations,” Fang Xinghai said.
General Secretary Xi Jinping pointed out in his keynote speech at the Boao Forum for Asia in April this year: No matter what changes take place in the world, China’s confidence and will to reform and opening up will not be shaken, and China will expand its high-level opening up. Premier Li Keqiang emphasized during his inspection tour in Shenzhen not long ago: Opening up is my country’s basic national policy. No matter how the international situation changes, we will unswervingly expand opening up, make better use of both domestic and international markets and resources, enhance economic competitiveness, and achieve Mutual benefit and win-win.
Fang Xinghai said that the CSRC has earnestly implemented the requirements of the CPC Central Committee and the State Council, and the opening of the capital market has made new achievements this year.
These achievements are mainly manifested in the following three aspects.
The first is to deepen the interconnection of domestic and foreign capital markets and broaden the channels for cross-border investment and financing.
Expand the scope of the Shanghai-Shenzhen-Hong Kong Stock Connect and officially launch ETF trading under the Stock Connect. Optimize the Shanghai-Shenzhen-Hong Kong Stock Connect trading calendar and increase the number of trading days. Optimize and expand the interconnection depositary receipt business, expand domestically to Shenzhen Stock Exchange, and overseas to Switzerland and Germany. Five domestic listed companies issued Global Depositary Receipts (GDRs) in Switzerland and the United Kingdom, with a total financing amount of approximately US$2.27 billion. Establish and improve the system for foreign institutional investors to participate in the exchange bond market, and allow foreign institutional investors who have entered the interbank bond market to directly invest in the exchange bond market.
The second is to promote the integration of China’s capital market with international standards, and to improve the market-oriented, legalized and internationalized business and investment environment.
“China and the United States have successfully signed a cross-border listed company audit and supervision cooperation agreement, which is an important step to remove the obstacles that have existed for many years for Chinese companies to go public in the United States.” Fang Xinghai emphasized that he will learn from the common practices in the international market and combine the actual situation of the Chinese market. Promoting the DVP reform will help improve the confidence of international investors in the efficiency of domestic settlement and the security of funds. The Futures and Derivatives Law, which came into effect on August 1 this year, makes clear institutional arrangements to speed up the two-way opening of the futures market.
The third is to do a solid job in the communication and publicity of the opening-up policy to stabilize market confidence and expectations.
The CSRC has strengthened communication with international investors, delivered policy information in a timely manner, stabilized foreign investment expectations, and achieved good results. In terms of the stock market, from January to August this year, the net inflow of foreign capital into A-shares through Shanghai and Shenzhen Stock Connect was 63.2 billion yuan; in terms of futures, as of August 26, the customer equity of foreign investors in the stock index futures market was 31.755 billion yuan, and in crude oil futures , iron ore futures, PTA futures, TSR 20, palm oil, international copper, and low-sulfur fuel oil futures markets have a total of 21.297 billion yuan in customer rights and interests. Foreign investment in my country’s capital market has shown obvious resilience.
With the continuous deepening of opening to the outside world, the operation quality and international influence of my country’s capital market have also been significantly improved. At present, China’s capital market has grown into the second largest market in the world, and its openness has become more and more open, attracting more and more international investors to actively participate.
When talking about the relevant measures of the China Securities Regulatory Commission on the next two-way opening of the capital market, Fang Xinghai said that the China Securities Regulatory Commission will coordinate development and safety, fully support and stabilize the economic market, and launch more vigorous and in-depth opening measures to promote capital. High-quality development of the market.
Fang Xinghai revealed that these measures will focus on three aspects.
First, we will continue to steadily advance the all-round institutional opening of markets, institutions and products.
Promote the legislative procedures for new overseas listing regulations, and make preparations for supporting rules and system construction after the implementation of the reform. Expand and optimize the interconnected depositary receipt business, and support more listed companies in the issuance and listing of interconnected depositary receipts. Further optimize and improve the Shanghai-Shenzhen-Hong Kong Stock Connect mechanism, and promote substantial progress in the interconnection of the exchange bond market. Steadily expand the international varieties of commodities and financial futures, support the authorization and cooperation of the settlement price of futures products, and realize the diversification of the opening-up path of the futures market.
Second, we will further strengthen the building of regulatory capabilities and risk prevention capabilities in an open environment.
Adhere to the requirement of “open, see clearly, and manage”, strengthen the monitoring of cross-border capital flows, and maintain the stable operation of the capital market. Implement the Sino-US cross-border audit supervision cooperation agreement, and build a predictable international regulatory environment for the high-level opening of the capital market. Continue to strengthen communication with foreign institutional investors, continuously improve the convenience of A-share investment, and continuously enhance the confidence of foreign investment in my country’s capital market.
Third, we will further strengthen the pragmatic cooperation between the mainland and Hong Kong capital markets. The SFC attaches great importance to the complementary advantages and coordinated development of the capital markets of the two places, promotes the cooperation between the capital markets of the Mainland and Hong Kong to a higher level and a deeper level, and supports Hong Kong in maintaining its status as an international financial center.
Fang Xinghai also mentioned that in the next step, the CSRC will launch the following three new measures to expand practical cooperation in the capital markets of the two places with the Hong Kong side and relevant departments:
The first is to expand the stock targets of Shanghai-Shenzhen-Hong Kong Stock Connect. Promote the inclusion of eligible stocks of major foreign companies listed in Hong Kong and more companies listed in Shanghai and Shenzhen.
The second is to support Hong Kong in launching a RMB stock trading counter. Research on adding RMB stock trading counters in Southbound Stock Connect to help RMB internationalization.
The third is to support Hong Kong in launching treasury bond futures. Research and support Hong Kong’s launch of treasury bond futures, accelerate the opening of the domestic treasury bond futures market to the outside world, and realize the coordinated development of the two places.
“Looking into the future, the further reform and opening up of China’s capital market will continue to inject strong vitality into the high-quality development of the capital market. We sincerely welcome international financial institutions to continue to seize the opportunity to expand the scale and level of investment and development in China, and jointly participate in the high-quality development of China’s capital market. .” Fang Xinghai said at the end of his speech.
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