Economy

The acceleration of the opening up of the capital market to the outside world has strengthened the "magnetic attraction" of Chinese assets

2025-02-28   

Foreign investment is an important participant and builder in China's financial market. In recent times, relevant departments have successively launched a series of measures to release positive signals of accelerating the opening up of the capital market to the outside world. Experts believe that with the steady progress of institutional opening up of the capital market, the "magnetic attraction" of Chinese assets will be further enhanced, and foreign institutions will continue to increase their layout in the Chinese market. Recently, relevant departments have successively launched a series of measures to open up the capital market to the outside world. On February 19th, according to the Chinese government website, the General Office of the State Council recently forwarded the "2025 Action Plan for Stabilizing Foreign Investment" that was reviewed and approved by the State Council Executive Meeting. The Action Plan proposes to encourage foreign investment in equity investment in China and guide more high-quality foreign investment to invest in Chinese listed companies in the long term; Guide various funds to carry out equity investment cooperation with foreign-funded enterprises, support foreign-funded enterprises in China to expand their investment and operation scale, and deeply cultivate the Chinese market. Jiang Jing, a partner at Guohuan Law Firm, believes that the above measures will effectively improve the convenience of foreign investment in equity and venture capital in China, and orderly expand the opening up of venture capital to the outside world. On February 26th, the State Administration for Financial Regulation issued a notice on matters related to financial institutions in Hong Kong and Macau investing in insurance companies. The notice states that starting from March 1st, financial institutions in Hong Kong and Macau will no longer comply with the requirement of "total assets not less than 2 billion US dollars at the end of the most recent year" when investing in domestic insurance companies. The State Administration for Financial Regulation stated that the issuance of the notice is an important measure to orderly expand financial opening up to the outside world, which is conducive to attracting high-quality financial institutions from Hong Kong and Macao to invest and invest in mainland insurance companies, further enhancing capital strength, optimizing equity structure, and deepening open cooperation with Hong Kong and Macao. Lowering the threshold for Hong Kong and Macao financial institutions to enter the mainland insurance market can provide more opportunities for Hong Kong and Macao financial institutions to share the growth of the mainland insurance market Wang Xiangnan, Deputy Director of the Insurance and Economic Development Research Center of the Chinese Academy of Social Sciences, said that more Hong Kong and Macao financial institutions holding shares in mainland insurance companies will also help promote technological cooperation and market competition in the insurance industry in various regions, improve service levels and innovation capabilities. Experts believe that as the institutional opening-up of the capital market steadily advances, the attractiveness of Chinese assets to global funds will further increase. One of the manifestations is that foreign institutions have increased their research efforts on Chinese A-share listed companies. The China Securities Journal reporter found that since this year, Goldman Sachs, Schroder, Nomura and other foreign institutions have repeatedly appeared in the research list of A-share listed companies, covering artificial intelligence, medical, consumer and other industries. Institutional insiders believe that with the global market repricing Chinese assets, the allocation value of the A-share market may be re examined by more international funds, and more foreign investment is expected to enter the A-share market. The entry of foreign capital can not only increase market liquidity, but also enhance the standardization level of the market, helping China's capital market and the global market to be more closely linked Fu Lichun, Financial Committee Member of the China Society for Market Regulation and Founding Partner of Yuntai Capital, stated. (New Society)

Edit:Yao jue Responsible editor:Xie Tunan

Source:China Securities Journal

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