The gradual implementation of institutional opening measures is expected to attract more foreign investment into A-shares
2023-03-20
Since this year, China's capital market has gradually implemented high-level institutional opening measures. On the one hand, the connectivity mechanism continues to deepen, further enhancing the attractiveness of the capital markets of the mainland and Hong Kong. On January 16th, the capacity of ETF interconnection was expanded, and the total number of "ETF Connect" products reached 102; On March 13, the rules for expanding the scope of interconnected stock targets on the Shanghai Shenzhen Stock Exchange officially took effect, and the capital markets of the mainland and Hong Kong began the largest two-way expansion. In addition, the optimization of the trading calendar of the Shanghai, Shenzhen, and Hong Kong Stock Connect will be officially implemented on April 24th, opening the trading days of the Shanghai, Shenzhen, and Hong Kong Stock Connect that are closed due to non-compliance with settlement arrangements. On the other hand, it continues to provide a more transparent, efficient and predictable institutional environment for overseas listing of enterprises. On February 17th, China Securities Regulatory Commission (CSRC) issued relevant system rules for overseas listing filing management; On February 24th, the CSRC issued amendments to the supporting confidentiality and archive management rules for the overseas listing filing management system. At the same time, the convenience for foreign institutions to come to China for exhibition has continuously improved. Since the beginning of the year, many applications for the establishment of wholly foreign-owned public funds have been approved, such as BlackRock Fund, Teda Manulife Fund, Lubomai Fund, and so on. In addition, the approval for the admission of foreign securities firms is steadily advancing. On January 19th, Standard Chartered Securities was approved for establishment, becoming the first newly established wholly foreign-owned securities company in China. "After recent years of development, the interconnection mechanism has continued to deepen, the overseas listing system for enterprises has continuously improved, and the cooperation between the mainland and Hong Kong capital markets has deepened. China's capital market institutional opening has steadily advanced." Liu Ying, academician and director of the Cooperative Research Department of the Chongyang Institute of Finance at Renmin University of China, told Securities Daily. Chen Yunsen, a professor at the Central University of Finance and Economics and director of the Capital Market Regulation and Reform Research Center, told Securities Daily that the gradual implementation of high-level institutional opening measures in the capital market has made the modern capital market with Chinese characteristics demonstrate strong resilience and confidence. In the future, an open and inclusive capital market will continue to attract overseas funds and continuously optimize the investor structure of the A-share market. After the National Bureau of Statistics released economic data from January to February this year on March 15th, foreign investment institutions continued to strengthen their confidence in China's economic prospects. Goldman Sachs' macroeconomic research team said that considering the rapid recovery of domestic personnel mobility and strong service consumption and other economic activity data in the first two months of this year, the GDP growth forecast for the first quarter and the full year of 2023 was increased to 4.0% and 6.0% from 2.7% and 5.5%, respectively. At the same time, foreign investment's confidence in the Chinese market is also reflected in data. According to Wind data, as of March 17, the cumulative net inflow of northbound funds during the year was 164.573 billion yuan, including 85.871 billion yuan from Shanghai Stock Connect and 78.702 billion yuan from Shenzhen Stock Connect. In addition, some institutions predict that foreign capital is expected to flood into the A-share market in a large scale this year. CICC estimates that in 2023, overseas funds will have a net inflow of 300 billion to 400 billion yuan throughout the year. "Currently, the activity and importance of foreign capital in the A-share market is increasingly prominent, and the willingness of foreign investors to participate in A-shares is gradually increasing." Chen Yunsen said that the high-level opening up of the capital market has achieved significant results,
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：Securities Dairy
Special statement: if the pictures and texts reproduced or quoted on this site infringe your legitimate rights and interests, please contact this site, and this site will correct and delete them in time. For copyright issues and website cooperation, please contact through outlook new era email：lwxsd@liaowanghn.com
Economy
Recommended Reading Change it 
Home
