SFC: strengthening cooperation between the capital markets of the mainland and Hong Kong and promoting the coordinated development of the two markets

2022-01-12

According to the website of the CSRC, on January 10, Fang Xinghai, vice chairman of the CSRC, said at the 15th Asian financial forum that the CSRC has always attached great importance to the complementary and coordinated development of the capital markets of the two places, continuously deepened the all-round and multi-level cooperation between the mainland and Hong Kong capital markets, and supported qualified mainland enterprises to go to Hong Kong for listing and financing. Fang Xinghai said that in recent years, the close cooperation between the two capital markets has not been affected by the epidemic and the international environment. Practical cooperation in the fields of market, products, institutions and supervision has constantly presented new highlights and made new breakthroughs. In terms of market and product connectivity, the two sides support companies with different voting right structures, unprofitable biotechnology companies and science and Innovation Board stocks to be successively included in the subject of Shanghai Shenzhen Hong Kong stock connect, so as to promote the smooth implementation of ETF interoperability products. The CSRC supports and assists in the launch of A-share index futures in Hong Kong, providing international investors with a more convenient risk management tool for investing in the mainland market, and enhancing Hong Kong's service capacity and attraction to international capital. In terms of mainland enterprises listing in Hong Kong, the CSRC has always supported qualified mainland enterprises to list and raise funds in Hong Kong. By the end of 2021, 1222 mainland enterprises had been listed in Hong Kong, accounting for 47% of the total number of Listed Companies in Hong Kong. This has provided an important boost for mainland enterprises to allocate resources globally and achieve high-quality development. It has also created a good opportunity for global investors to share the dividends of China's long-term and stable economic development. Recently, the CSRC has publicly solicited opinions on the relevant systems and rules for overseas listing of domestic enterprises. The CSRC believes that the introduction of the relevant rules will further increase the stability and predictability of the overseas listing supervision system of mainland enterprises, better support enterprises to list overseas in accordance with the law, and more effectively protect the legitimate rights and interests of global investors. In terms of mutual establishment of institutions, 9 Hong Kong funded joint venture securities companies, 2 Hong Kong funded joint venture fund management companies and 1 Hong Kong funded wholly-owned futures company have developed in the mainland, and 34 mainland securities companies, 25 mainland fund companies and 17 mainland futures companies have developed in Hong Kong. In terms of regulatory cooperation, the CSRC of the two places regularly held high-level and working level meetings, improved and improved cooperation mechanisms such as cross-border risk prevention and cross-border derivatives supervision, and cooperated more and more closely and smoothly in daily supervision, law enforcement, information exchange and personnel exchange, providing a strong regulatory guarantee for the smooth operation of the markets of the two places. Fang Xinghai said that Hong Kong's role as a link between Mainland China and the international financial market has been further strengthened. The CSRC will continue to support Hong Kong in consolidating and upgrading its status as an international financial center and further promote the formation of a good situation of complementary and coordinated development of the capital markets of the two places. (outlook new era)

Edit:Ming Wu    Responsible editor:Haoxuan Qi

Source:people.cn

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