The China Securities Regulatory Commission and six other departments recently revised and released the "Management Measures for Strategic Investment of Foreign Investors in Listed Companies", releasing a new signal to promote high-level opening up to the outside world and attract and utilize foreign investment with greater efforts. Industry insiders believe that foreign investment is an important participant in China's capital market. The five measures involved in the Measures are breakthrough reforms that will greatly enhance the attractiveness of A-share listed companies to foreign investment and enhance the vitality of the capital market. In the future, the system of opening up the capital market to the outside world will be further optimized and improved, and the convenience of foreign investment is expected to continue to improve. The revised "Measures" have mainly lowered the threshold for foreign investors to implement strategic investments in listed companies from five aspects, including including including foreign natural persons in the category of foreign investors; Relaxing asset requirements for foreign investors; Increase the strategic investment method of tender offer; For strategic investments implemented through targeted issuance or tender offer, it is allowed to use shares of overseas non listed companies as payment consideration; Appropriately reduce the requirements for shareholding ratio and shareholding lock up period. These five measures focus on the current bottlenecks for foreign investment entering the Chinese market, each of which is a breakthrough reform that will greatly enhance the attractiveness of A-share listed companies to foreign investment Tian Xuan, Dean of the National Institute of Finance at Tsinghua University, said. Tian Xuan analyzed that allowing foreign natural persons to implement strategic investments in listed companies effectively expands the scope of foreign investors and helps attract more foreign investment to participate in strategic investments as individuals, injecting new vitality into the Chinese capital market; Adjusting the asset requirements for foreign investors, especially lowering the asset threshold for non controlling shareholders, can help attract more small and medium-sized foreign investors to participate in strategic investments; Allowing foreign investors to implement strategic investments through tender offers provides them with more investment options and enhances their flexibility in implementing strategic investments in listed companies; Allowing the use of shares of non listed overseas companies as payment consideration provides more payment options for foreign investors and helps reduce transaction costs for foreign investment; Appropriately reducing the shareholding ratio and lock up period requirements reduces investment risks and helps stabilize foreign investment. Optimizing and improving the system of opening up to the outside world, continuously enhancing the convenience of foreign investment, is one of the important contents of opening up the capital market to the outside world. From the perspective of optimizing the cross-border interconnection mechanism of the capital market, the China Securities Regulatory Commission issued five measures for capital market cooperation with Hong Kong in April, including relaxing the scope of eligible stock ETF products under the Shanghai Shenzhen Hong Kong Stock Connect, including REITs in the Shanghai Shenzhen Hong Kong Stock Connect, supporting the inclusion of RMB stock trading counters in the Hong Kong Stock Connect, optimizing mutual recognition arrangements for funds, and supporting leading enterprises in mainland industries to list in Hong Kong. Afterwards, the Shanghai and Shenzhen Stock Exchanges revised the implementation measures for the Shanghai Hong Kong Stock Connect business, expanding the scope of ETF interconnection. Recently, the deployment of opening up the futures market is a vivid footnote to the expansion of high-level institutional opening in the capital market. In October, the General Office of the State Council forwarded the opinions of the China Securities Regulatory Commission and other departments on strengthening supervision, preventing risks, and promoting high-quality development of the futures market. The Opinions proposed to continue to expand the high-level institutional opening, including orderly promoting the inclusion of eligible commodity futures and options into the range of open varieties, and studying the inclusion of stock index futures and treasury bond futures into specific varieties. Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), recently stated at the 2024 Financial Street Forum Annual Meeting that the CSRC will steadfastly continue to promote comprehensive institutional opening up of the market, institutions, and products, deepen interconnectivity between domestic and foreign markets, broaden overseas listing channels, and encourage and support more foreign-funded institutions to invest and develop in China. It can be expected that a series of opening-up policies will be transformed into stronger attractiveness, and foreign institutions' enthusiasm for allocating Chinese assets is expected to continue to increase. The latest global capital flow report released by Goldman Sachs shows that the Chinese mainland stock market received a net inflow of $24.385 billion in the four weeks ending October 30th. While buying Chinese assets with real money and silver, foreign institutions actively invest and expand their businesses in China. HSBC Bank (China) Limited announced on October 25th that it has obtained the qualification approval for securities investment fund custody from the China Securities Regulatory Commission, and can provide custody services to securities investment funds established locally, promoting the opening and diversified development of the fund custody market. Expanding opening up to stabilize and attract foreign investment, and further increasing foreign investment participation, is an important measure to improve the functioning of the capital market. In the future, the types of interconnected and open products are expected to become more diverse Tian Lihui, Dean of the Institute of Financial Development at Nankai University, believes that. According to Guan Tao, Global Chief Economist of Bank of China International Securities, it is necessary to further strengthen the monitoring and early warning of cross-border capital flows in order to maintain national financial and economic security under the conditions of expanding financial openness. (New Society)