At present, China's institutional opening-up of the capital market is entering a new stage, with equal emphasis on "bringing in" and "going out". The two-way opening of the market, products, and institutions is steadily promoted, and the convenience of foreign investment in equity and venture capital in China continues to improve. The brand of "investing in China" is becoming increasingly popular, and more and more foreign investment is willing to come, stay, and develop well. In November of this year, the capital market interconnection mechanism between mainland China and Hong Kong celebrated its 10th anniversary with greater efforts to "introduce". Over the past decade, the interconnected trading mechanism has become increasingly sophisticated, with an increasing number of targets and diverse trading varieties, making it an important channel for international investors to allocate RMB assets. According to data, as of November 15th, the cumulative transaction amount of foreign capital through the Shanghai Stock Connect was 7 trillion yuan, and the daily average transaction amount of the Shanghai Stock Connect increased significantly from 4.7 billion yuan in the first month of its opening in 2014 to 128.3 billion yuan; In terms of southbound transactions, mainland investors have accumulated a total transaction amount of 27 trillion yuan through the Hong Kong Stock Connect, and the average daily transaction amount of the Shanghai Hong Kong Stock Connect has increased from 800 million Hong Kong dollars in the first month of its opening in 2014 to 50.9 billion Hong Kong dollars. The scope of investment in interconnectivity continues to expand, with transaction volumes reaching new highs, providing domestic and foreign investors with more convenient and efficient cross-border asset allocation channels, and injecting new liquidity and vitality into the capital markets of both regions Tian Lihui, Dean of the Institute of Financial Development at Nankai University, said. The prosperous development of interconnectivity is the result of China's continuous promotion of comprehensive institutional opening-up in its capital market. In recent years, China's capital market has steadily opened up to the outside world: restrictions on the foreign shareholding ratio of foreign securities, funds, and futures companies have been lifted, and foreign institutions have been given national treatment in terms of business scope and regulatory requirements; Expand the opening of specific futures and options varieties; Improve the Shanghai Shenzhen Hong Kong Stock Connect mechanism and optimize trading calendar arrangements. A large number of foreign-funded institutions have come to China to invest and expand their businesses, and to deeply cultivate the Chinese market. As of the end of October, 25 foreign-funded holding or wholly-owned securities, fund, and futures companies, including Fidelity, have been approved successively. Five foreign-funded banks, including Citibank, have obtained the qualification of fund custody for subsidiary banks in China. 35 foreign-funded or joint venture private equity securities investment fund managers, including Qiaoshui, have been registered with the Fund Industry Association. The attractiveness and influence of the Chinese market have significantly increased. Currently, A-shares have been included in international indices such as Ming Sheng, FTSE Russell, S&P Dow Jones, and their inclusion ratio continues to increase. Foreign capital continues to flow into the A-share market through QFII and the Shanghai and Shenzhen Stock Connect. As of the end of October, there were 2788 underlying stocks listed on the Shanghai and Shenzhen Stock Connect, accounting for over 90% of the total A-share market value. Zhou Wenren, General Manager and Chief Investment Officer of Morgan Stanley Fund Management (China) Co., Ltd., stated that with the deepening of opening up to the outside world, the Chinese capital market maintains a vigorous development trend, with a wide and highly diverse range of investable targets, providing more choices for international funds to achieve diversified asset allocation. Foreign investment is an important participant and builder in China's capital market. More and more foreign medium - and long-term funds are entering the market, which not only better shares the dividends of China's development, but also introduces more capital to the domestic market and helps promote the healthy development of the capital market Dong Dengxin, Director of the Institute of Finance and Securities at Wuhan University of Science and Technology, said. Actively supporting 'going global' and expanding the two-way opening of the capital market is the only way to promote high-quality development of the capital market. While vigorously "bringing in", the pace of "going out" is also accelerating. According to data, as of November 28th, about 90 companies have listed on the Hong Kong Stock Exchange and the US stock market this year, and the reserve enterprises are still expanding. The increasing popularity of companies going public overseas is due to the normalization, orderliness, and transparency of filing work. Since March last year, the China Securities Regulatory Commission has implemented relevant system rules for the management of overseas listing filing of enterprises, providing a more smooth channel for domestic enterprises to go public overseas. In April of this year, the China Securities Regulatory Commission issued the "Sixteen Measures for Capital Market Services for High level Development of Technology Enterprises", further proposing to better support the overseas listing and financing development of technology-based enterprises. The series of policy measures have clarified the regulatory direction, improved the institutional system, enhanced the transparency and predictability of overseas listing of enterprises, and stimulated the enthusiasm of domestic enterprises to "go global". As of the end of October this year, 195 companies have completed the filing for overseas initial public offerings. Among them, there are many companies in the new economy fields such as artificial intelligence and autonomous driving. He Zhaofeng, the head partner of listing services in Anyong Greater China, believes that overseas listing of enterprises can provide financing advantages, market opportunities, enhance brand awareness, and optimize corporate governance, thereby enhancing the competitiveness of enterprises in overseas markets. Against the current backdrop of active support from the Chinese government, enterprises can proactively seize opportunities to go global. At the same time, it should be noted that overseas listings of enterprises face many challenges, including high compliance and tax costs after listing, differences in regulatory systems among different countries and regions, and the possibility of encountering cross-border legal disputes. Enterprises should comprehensively consider these factors and choose an overseas listing path that is suitable for their own development. In addition to enterprises in the new economy sector, fund companies are also actively going global by cooperating with international asset management giants, establishing overseas subsidiaries, applying for Qualified Domestic Institutional Investor (QDII) qualifications, and launching ETF exchange products in overseas markets. They actively participate in global market competition and are committed to building world-class asset management institutions. At present, there are over 20 overseas subsidiaries established by domestic public funds. Fund companies going global and conducting asset allocation worldwide can optimize investments, diversify risks, and provide investors with the conditions to capture global market opportunities Tian Lihui stated that under the policy guidance of "bringing in" and "going out", domestic enterprises and financial institutions can better utilize the two markets and resources, learn from each other and compete with foreign enterprises and institutions in a healthy manner, and achieve high-quality development. The goal of deepening the two-way opening-up and anchoring high-level institutional opening-up has been achieved. Since the beginning of this year, a series of favorable policies have been implemented intensively, and China's capital market is aligning with the international market in a more open and inclusive manner. The convenience of international institutions investing in high-quality assets in China continues to improve. This year, 10 departments including the Ministry of Commerce and the China Securities Regulatory Commission jointly issued the "Several Policy Measures on Further Supporting Overseas Institutions to Invest in Domestic Technology based Enterprises", which clarifies the efficient approval of Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII) qualification applications in accordance with the law, facilitating and encouraging overseas institutions to invest in domestic technology based enterprises. The threshold for foreign investment to enter the market is constantly being optimized. Recently, six departments including the Ministry of Commerce and the China Securities Regulatory Commission revised and released the "Management Measures for Strategic Investment of Foreign Investors in Listed Companies", adjusting five aspects including subscription targets, asset requirements, and investment methods, further expanding the channels for foreign investment in the securities market, and encouraging foreign investment in long-term and value investing. The package of favorable measures sends a welcome signal to foreign investment, which helps attract more foreign investment into the Chinese market and promote the prosperity and development of China's capital market Tian Lihui suggests that in order to encourage foreign investment to come, stay, and develop well, it is necessary to continue to deepen the two-way opening of the capital market in the future, expand the scope of market opening, and moderately optimize the requirements for investor access, investment quotas, and management methods in various channels, so that foreign institutions can enter the Chinese market more deeply and conveniently, and share the dividends of China's economic growth. We should also balance development and security. While deeply integrating with the international market and actively embracing foreign investment, we must also ensure our own stable development, "said Li Zhan, Chief Economist of the Research Department of China Merchants Fund. This requires the coordinated efforts of monetary policy and macroprudential policy, and the establishment of reasonable and acceptable risk control policies such as capital account management, to avoid disturbances to the domestic capital market and the real economy due to excessive fluctuations in international capital flows. Li Ming, Vice Chairman of the China Securities Regulatory Commission, stated that in the next step, the commission will steadfastly promote comprehensive institutional opening up of the market, institutions, and products, further enhance policy stability, transparency, and predictability, encourage and support more foreign institutions to invest and develop in China, and create the "Invest in China" brand. (New Society)