Since the opening of the Shanghai Hong Kong Stock Connect mechanism ten years ago, the trading mechanism has become increasingly perfect, the number of targets has continued to increase, and the trading varieties have gradually become richer. Interconnection has become an important channel for international investors to allocate RMB assets. Market insiders believe that the high-level two-way opening of the capital market has entered a new stage, with both "bringing in" and "going out" rushing forward. More measures to promote high-level institutional opening of the capital market will be studied and introduced, forming a trend of foreign investment "willing to come, able to stay, and developing well". On November 17, 2014, the Shanghai Hong Kong Stock Connect was launched, connecting the financial infrastructure of mainland China and Hong Kong for the first time. This allowed investors to entrust local securities firms, local exchanges, and settlement companies to buy and sell stocks listed on each other's markets. On December 5, 2016, the Shenzhen Hong Kong Stock Connect was opened, expanding the connectivity between the mainland and Hong Kong capital markets to Shenzhen. A series of open policies are transforming into stronger attractiveness. More and more foreign institutions are coming to China for inspection and business development, casting a "vote of confidence" in China's economic development with real money and silver. As an important channel for international investors to allocate RMB assets, the Shanghai Hong Kong Stock Connect has created a successful model for establishing multi-level connections between China and the international financial market in terms of systems, products, services, and more. In the past decade, the development of interconnectivity has further accelerated the internationalization process of the domestic market, enhanced investor diversity, and enriched product offerings Fang Dongming, China Head of UBS Global Financial Markets, stated that interconnectivity enables the full integration of China's onshore and offshore markets. In terms of trading volume, according to the latest data from the Hong Kong Stock Exchange, the daily average transaction volume of northbound and southbound transactions in the first three quarters of 2024 has increased by 21 times and 40 times respectively compared to the daily average data in the first month of 2014. With the steady increase of two-way capital inflows, the two markets have been fully integrated in terms of investment concepts and trading strategies. The level of interconnectivity is still continuously improving. In early November, the first batch of 14 securities companies piloted the implementation of the "Cross border Wealth Management Connect" business in the Guangdong Hong Kong Macao Greater Bay Area. The relevant person in charge of China Merchants Securities stated that the expanded "Cross border Wealth Management Connect" further enhances the convenience of cross-border investment in the Guangdong Hong Kong Macao Greater Bay Area and promotes the interconnection of financial markets in the Greater Bay Area. Increasing the participation of securities companies in pilot projects will promote the enhancement of their product competitiveness and investment research capabilities, serve cross-border investors well, and further integrate into the international competitive environment. The pace of foreign institutions' business development is also accelerating. According to authoritative data, as of the end of October 2024, 25 foreign-funded holding or wholly-owned securities, fund and futures companies such as Fidelity have been approved successively, 5 foreign-funded banks such as Citibank have obtained fund custody qualifications in their subsidiaries in China, and 35 foreign-funded or joint venture private equity securities investment fund managers such as Qiaoshui have been registered with the Fund Industry Association. Since 2024, multiple foreign-funded institutions have applied to establish new institutions in China or seek to expand their business layout in China. The company received approval from the China Securities Regulatory Commission on April 18th this year to establish a public fund limited company. The entire application process was very smooth, "said Shen Liang, General Manager of Allianz Fund. The pace of 'going global' is accelerating while continuing to 'bring in'. According to Wind data, as of November 17th, 49 Chinese companies have entered the US stock market this year, surpassing the 31 companies in the same period last year; A total of 40 companies have listed on the Hong Kong Stock Exchange, surpassing the 34 companies in the same period last year, and the number of backup enterprises continues to expand. Overseas listing of enterprises not only helps to broaden financing channels and obtain high-quality investments, but also enhances the company's visibility and brand image, expands global market space, and strengthens international competitiveness. Especially for technology and innovative enterprises, overseas listings may bring higher market valuations and attract more global capital attention Liu Xiangdong, Chief Analyst of Dongyuan Investment, said. Starting from March 2023, the China Securities Regulatory Commission will implement a system for filing overseas listings of enterprises, providing more smooth channels and conditions for domestic enterprises to go public overseas. According to incomplete statistics, since the implementation of the overseas listing filing system for enterprises, as of November 17th, about 200 enterprises have obtained overseas initial public offering filing and full circulation filing. Overseas financing for enterprises includes various types such as direct overseas listing, establishment of contractual control (VIE) structures, etc. In addition, the industry distribution of registered enterprises shows diversity, and new economic fields such as artificial intelligence, biomedicine, and autonomous driving continue to emerge. With the promotion of a series of measures such as accelerating the overseas listing and filing of eligible technology-based enterprises in accordance with laws and regulations, and supporting technology-based enterprises to go public in Hong Kong, the enthusiasm of technology-based enterprises for overseas IPOs will continue to increase Jiang Jing, a partner at Guohuan Law Firm, said. More opening-up measures are worth looking forward to in the future. High level institutional two-way opening-up is expected to be further improved, and the stability and transparency of policy formulation will be enhanced, facilitating foreign investment in China. The channels and scope of foreign investment in the A-share market will be further expanded. In early November, the revised "Measures for the Administration of Strategic Investment by Foreign Investors in Listed Companies" were released, which lowered the investment threshold from five aspects, further expanded the channels for foreign investment in the securities market, leveraged the potential of strategic investment channels to attract investment, and encouraged foreign investment in long-term and value investments. On the basis of existing policies and regulations, foreign investment and business development in China will receive more support measures. Recently, we, together with the Ministry of Commerce, have clarified the operational guidelines for the implementation of tax incentives for sovereign funds investing through QFII channels, and are currently formulating or revising short-term trading rules, procedural trading rules, etc., "said Shen Bing, Director of the Institutional Department of the China Securities Regulatory Commission, at the 2024 Shanghai Stock Exchange International Investor Conference on November 7. Vice Chairman of the China Securities Regulatory Commission (CSRC), Li Ming, introduced that the CSRC will firmly promote the comprehensive institutional opening of the market, institutions, and products, facilitate cross-border investment and financing, expand the scope of investment targets in the Shanghai Shenzhen Hong Kong Stock Connect, optimize mutual recognition arrangements between mainland and Hong Kong funds, support the launch of more cross-border ETF products, expand the interconnection of depositary receipts, broaden overseas listing channels, expand the opening of futures markets, further enhance the stability, transparency, and predictability of policies, encourage and support more foreign institutions to invest and expand their business in China, and create the "Invest in China" brand. (New Society)