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China’s securities regulator will further deepen opening-up with multiple measures and promote high-quality development of China’s capital market, said Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission (CSRC), at a financial industry forum in Beijing on Friday.
The CSRC will work with related financial departments in Hong Kong on three measures to expand Mainland – Hong Kong cooperation, including increasing the number of stocks for Mainland – Hong Kong Stock Connect Scheme and promoting inclusion of Hong Kong-listed foreign companies into the scheme, he said.
The regulator will also support Hong Kong to introduce yuan-denominated stock trading and study yuan-denominated stock trading under the Stock Connect Scheme to promote the yuan’s internationalization; and supporting Hong Kong to introduce government bond futures and accelerate the opening of China’s onshore government bond futures market to overseas investors, said Fang.
The CSRC will push forward with new legislation for Chinese firms’ overseas listing, steadily promote an all-rounded systematic opening-up of capital markets, institutions and products, expand and optimize the global depositary receipt (GDR) business under stock connect scheme and encourage more Chinese companies to issue GDRs, certificates issued by custodian banks to represent China’s yuan-denominated A-shares, said Fang.
China will carry out the auditing supervision cooperation agreement reached between China and the US, and foster a stable global supervisory environment for the high-level opening-up of China’s capital market.
“We will also strengthen communication with overseas institutional investors, and improve the investment convenience of A-share market, so as to cement foreign investors’ confidence toward China’s capital market,” Fang said.
At the same forum, Ruan Jianhong, an official from the People’s Bank of China (PBOC) said that China has pursued a normal monetary policy without excessive stimulus, which leaves space for further adjustment and coordination.
Ruan noted that China’s monetary policy shall be adjusted across cycles, and maintain stable and moderate credit growth, as well as abundant and reasonable liquidity to help the development of the economy.
At the same time, China will pay close attention to inflation at home and abroad, to avoid flood-like stimulus and excess liquidity, so as to keep domestic prices within a reasonable range, he said.