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The pace of China's capital market opening to the
Published:6/24/2019 4:17:06 PMViews: 100
Recently, China's capital market has been opening up frequently. On June 21, FTSE Russell announced that it would incorporate A shares into its global stock index system and take effect at the opening of the market on June 24. On June 17, Huluntong officially launched, creating a new mode of exchange interconnection. At the Lujiazui Forum held in mid-June, Chairman Yi Huiman of the CSRC announced nine measures to further expand the opening of the capital market to the outside world. In May, Mingsheng (MSCI) expanded its A share weight, and the MSCI Emerging Markets Index China's A-share inclusion factor increased from 5% to 10%.
These encouraging latest developments fully reflect the current complex international situation, the pace of opening up of China's capital market to the outside world has not stopped, China's capital market is welcoming global investors with a more open mind, and the opening door will be wider and wider.
In recent years, in the dimensions of market, institution and product, the reform and opening-up of China's capital market has been steadily progressing. A series of measures of financial services and market opening have been taken, and the investment and ecological environment of capital market have been constantly improved. The proportion of foreign shareholdings of joint venture securities companies, fund management companies and futures companies has been greatly relaxed, and the scope of business has been treated as national treatment; the quotas of Shanghai, Shenzhen, Hong Kong, Tong, QFII and RQFII have been greatly expanded; and the policy of opening foreign A-share securities accounts has been further liberalized.
The smooth incorporation of A shares into the FTSE Russell Index is another important milestone in the process of internationalization of China's capital market, which fully reflects the support and trust of international investors for the long-term improvement of China's economy and the reform and opening-up of the capital market. In the medium and long term, the incorporation of A shares into the FTSE Russell Global Index System will further promote the internationalization of A shares, on the other hand, improve the structure of institutional investors of A shares and force the market system and rules to further mature and perfect.
Wakas Samad, chief executive of FTSE Russell, commented that the formal incorporation of China's A shares into the FTSE Russell Global Index System is an important symbol of the development and opening of China's stock market. With the continuous efforts of China's regulatory authorities and market institutions, China's A-share market continues to grow and grow, the issuance and listing system continues to improve, the transparency of information disclosure is gradually enhanced, and international investment channels are increasingly rich. FTSE Russell will continue to provide index benchmarks and innovative analytical solutions to better meet the needs of global investors and promote investment in stocks and bonds in China.
Promoting reform and development through opening up is a successful experience of China's reform and opening up over the past 40 years. Looking back on the development of China's financial industry, the ever-expanding degree of openness has brought an important driving force for the vitality and growth of the financial market, and also made the industry more competitive.
Taking the securities industry as an example, in April 2003, the first Sino-foreign joint venture securities company, China Europe International Securities Co., Ltd., was formally established. In May of the same year, Bank of Switzerland and Nomura securities were approved by China Securities Regulatory Commission and became the first qualified foreign institutional investors to obtain securities investment business licenses. For a while, the market is full of worries about "wolves coming". After more than 10 years of development, there are more than 300 qualified foreign institutional investors in A-share market, and China's securities industry is also growing in open competition. Statistics from the Securities Industry Association show that by the end of the first quarter of this year, 131 securities companies had total assets of 7.05 trillion yuan, net assets of 1.94 trillion yuan and net capital of 1.62 trillion yuan.