Fang Xinghai: If foreign accounts cause major fluctuations in the stock market, we can suspend its trading

Fang Xinghai, vice chairman of the China Securities Regulatory Commission, stated at the Boao Forum for Asia on April 19 that as of March 31 this year, foreign investment in China's stock market accounted for 5%. As foreign capital continues to enter the Chinese market, it can be seen that the Chinese stock market is more stable than ever. The role of foreign capital in market pricing is increasing, creating conditions for value mining.

Fang Xinghai said: “5% is still relatively low, but the growth rate has been relatively fast in recent years. With the entry of foreign capital, A-shares have operated much more steadily in recent years than before. The reason is that foreign capital is gradually playing a important role in market pricing.” China’s stock market has a lot of value to tap. China’s economy is growing rapidly. Relatively speaking, there is a lack of institutional investors who can tap value. Foreign investment has just made up for this shortcoming.

Regarding "Will the inflow of foreign capital affect the stability of the stock market?" "What about the large inflow and outflow of foreign capital?"

Fang Xinghai said that the China Securities Regulatory Commission attaches great importance to this and will take precautions. There are three main types of foreign investment coming in. One is retail investment. The proportion is small and it will not affect our health and stability. There are also mutual funds, retirement funds, insurance companies, etc., which we welcome very much, and are also the largest percentage of positions held. There is also a form of self-operating through foreign brokerages, behind which are some hedge funds. Such funds are of more concern to us.

He said that in the design of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, there are regulations that can stop trading if funds come in and cause large fluctuations. The China Securities Regulatory Commission attaches great importance to safety and will continue to communicate with overseas institutional investors and overseas regulatory authorities, "We are confident in maintaining the stability of the capital market in the process of opening up."

If a certain foreign account fund enters A shares and causes significant market volatility, the China Securities Regulatory Commission will suspend its trading.

In response to regulatory issues regarding the listing of Chinese concept stocks in the United States, Fang Xinghai said on April 19 that the China Securities Regulatory Commission would unswervingly promote China-US financial cooperation. There will also be some problems in cooperation, which are normal. For example, there is an audit and supervision problem in the listing of Chinese concept stocks in the United States. The PCAOB (Accounting Oversight Committee for Listed Companies in the United States) needs to inspect accounting firms. The Securities Regulatory Commission believes that their demands are completely reasonable, the Shanghai Stock Exchange may also usher in the listing of American companies in the future, and they also need to comply with Chinese rules.

It is necessary to find a suitable method for PCAOB to smoothly inspect China's accounting firms, and the inspection process must also meet China's national security requirements. Regarding PCAOB's method of inspecting Chinese accounting firms, the China Securities Regulatory Commission believes that the method provided by China meets the requirements of both parties, but the latest version provided in August last year has not yet received a response from PCAOB. As long as both parties resolve these issues in good faith, a solution can be found to resolve PCAOB's concerns.

In response to the problems in the underwriting mechanism of A-share issuance, Fang Xinghai stated that the China Securities Regulatory Commission has a lot of work that needs to be improved in the issuance. It adheres to the marketization, internationalization and rule of law policy. The relevant rules and details are lacking. The China Securities Regulatory Commission will continue to improve and improve as they work. The major reform of the registration system that is currently being promoted requires further adjustment in some areas. I believe that with the advancement of reforms, good results will be achieved in the integration of our market with foreign countries.


方星海：外资账户如果造成股市大幅波动，我们可以暂停它交易

证监会副主席方星海4月19日在博鳌亚洲论坛表示，截至今年3月31日，外资在中国股市的持仓占比达到5%。随着外资持续进入中国市场，可以看到中国股市比以往更平稳。外资在市场定价中起到的作用在增强，为挖掘价值创造条件。

方星海说：“5%还是比较低的，但是这几年增长速度比较快。随着外资进入，A股近几年来运行比以往平稳了很多，原因就是外资在市场定价方面起的作用在逐渐增强。”中国股市是有很多价值可以挖掘，中国经济增长很快，相对来说缺少能够挖掘价值的机构投资者，外资进来正好弥补了这个缺陷。

对于“外资进来之后会不会影响股市稳定？”“外资大进大出怎么办？”

方星海表示，证监会对此高度重视，会做好防范工作。现在进来的外资主要有三种，一种是散户投资，比例很小，也不会影响我们的健康稳定。还有一种是共同基金、退休基金、保险公司等，这是我们非常欢迎的，也是持仓当中的最大比例。还有一类是通过国外券商的自营形式，背后是一些对冲基金，这样的资金是我们比较关注的。

他表示，在设计沪港通、深港通时有规定，如果资金进来造成大幅波动的话是可以停止交易的。证监会高度重视安全，会不断跟境外的机构投资者、境外的监管部门沟通，“我们有信心在开放的过程中维护资本市场的稳定”。

如果某一个外资账户资金进入A股后导致市场大幅波动，证监会就会暂停它交易。

在回应中概股在美上市的监管问题时，方星海4月19表示，证监会将坚定不移地推进中美金融合作。合作中也会有一些问题，是正常的，比如中概股在美上市存在审计监管的问题，PCAOB（美国上市公司会计监察委员会）要对会计师事务所检查，证监会认为他们的诉求是完全合理的，将来上交所也可能迎来美国公司的上市，他们也需要符合中国的规则。

要找到一个合适的办法，让PCAOB能够顺利检查中国的会计师事务所，同时检查的过程中也要符合中国的国家安全方面的要求。关于PCAOB检查中国会计师事务所的办法，证监会认为中方提供的办法是符合双方要求的，但去年8月份提供的最新版本还未获得PCAOB的回应。只要双方诚心诚意地去解决这些问题，可以找到办法解决PCAOB的关切。

针对A股发行承销机制存在的问题，方星海表示，证监会的在发行需要改进的工作不少，坚持市场化、国际化和法治化方针不变，发行和承销规则借鉴国际规则，结合中国实际制定出来的，相关的规则细节是有欠缺的，证监会将继续改进，一边干一边完善，目前正在推进的注册制这一重大改革，有一些地方要进一步磨合。相信随着改革的推进，我们市场和国外的接轨会取得好的成绩。