On September 6, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, stated in public that the "short bullish and long bearish" market in China's stock market is disappearing. As of September 3, foreign investors hold the market value of Chinese stocks through the Shanghai-Shenzhen-Hong Kong Stock Connect. It is 2.01 trillion yuan, and the proportion of the market capitalization in A shares is 3.28%.
In addition to the QFII and RQFII holdings, the proportion of all foreign capital holdings of China's tradable stock market is 4.69%, which is very low compared to the stock markets of Japan, South Korea and Taiwan.
There is still great potential for introducing foreign capital into China's stock market.
Fang Xinghai stated that the China Securities Regulatory Commission will accelerate the opening up of the capital market under the new situation, Promote reforms through opening up, and promote greater opening up through market-oriented reforms, to form a new pattern of high-level capital market opening to the outside world, and to promote the domestic and international economic cycle development.
First, continue to improve the product system of opening to the outside world, further expand the investment scope and targets of Shanghai and Shenzhen Stock Connect, broaden the interconnection of ETFs, facilitate the allocation of equity ETFs and RMB bond assets by overseas institutions, continue to increase the opening of the commodity futures market, and expand the scope of specific products. Create conditions in a timely manner to provide good risk management tools for foreign institutional investors to invest in China's stock and bond markets.
The second is to continue to promote the institutional opening of the capital market. Promote the release and implementation of the revised QFII and RQFII system rules as soon as possible, continue to improve and deepen the domestic and foreign market interconnection mechanism, enhance the investment convenience of international funds, increase the willingness and confidence of international investors to invest in the Chinese capital market, and further smooth the international and domestic market. The two market factors and resources flow freely and orderly, Forming complementary advantages and promoting a good circulation situation.
At the same time, conditions will be created in a timely manner to provide good risk management tools for foreign institutional investors to invest in China's stock, futures and bond markets.
The third is to continuously improve the two-way openness of the securities and futures industry. Continue to implement the policy of relaxing restrictions on foreign shareholding in the securities of fund and futures industry, Encourage overseas high-quality securities, fund and futures financial institutions to do business in China, Support domestic business institutions to go global, and promote ecological improvement of the capital market.
The fourth is to actively participate in international financial governance, and timely prevent and resolve cross-border capital market risks. Strengthen communication and policy coordination with overseas capital market regulators, strengthen cooperation in audit supervision of cross-border listed companies, severely crack down on financial fraud, jointly safeguard the legitimate rights and interests of investors in various countries, continuously improve their own regulatory standards, and improve cross-border capital monitoring and risk warning Mechanisms to prevent and respond to imported risks, and continuously improve the vitality and resilience of capital market operations in an open environment.