(Economic Observation) Foreign-controlled securities firms have successively "landed" China's capital market opening "steady progress"
China Online News, April 28 (Gao Zhimiao) Morgan Stanley Huaxin Securities and Goldman Sachs Gaohua Securities have completed the change of business information, and JP Morgan Securities (China) Co., Ltd. "cloud opened" in Shanghai ... The epidemic has no obstruction With regard to "capital flow", top foreign investment banks have increased their presence in the Chinese market. As of now, seven foreign-controlled securities firms have "landed".
What signals do foreign-controlled securities firms release one after another? Yang Delong, chief economist of Qianhai Open Source Fund, said in an interview with a reporter from China News that foreign-invested securities firms have landed one after another because foreign investors are optimistic about the Chinese capital market. "Because these foreign-owned holding brokers are well-known international brokers, their entry into the Chinese capital market shows that they are very optimistic about the future of the Chinese capital market and will bring more development opportunities to the domestic capital market."
Xia Lijun, a researcher at the Shanghai Institute of International Finance and Economics and a professor at the Antai School of Economics and Management at Shanghai Jiaotong University, also said that China ’s capital market has undergone 30 years of development and evolution, and the pace of reform and opening up is accelerating. Confidence in the market and China's economic development.
How will the entry of foreign-controlled securities firms affect the Chinese securities industry? Fu Ziheng, general manager of Huaxin Securities Private Equity Fund Research Center, told China News that "new competitors in the industry will have a competitive impact on existing domestic brokers, but external competition will also form a" catfish effect ", forcing domestic brokers to pass various Ways to enhance their own competitive strength. At the same time, the introduction of external peers will bring the "incremental" contribution to the internationalization of China's capital market and the increasing participation of domestic securities firms in external businesses. "
Xia Lijun also believes that the entry of foreign-controlled securities firms will undoubtedly increase the competition between securities firms and bring pressure on domestic securities firms, but it can also be understood as an increase in the transformation and upgrading of domestic securities firms. "On the one hand, domestic brokers need to continue to develop and develop their localized advantages that are familiar with their national conditions, and at the same time, they must transform and upgrade to develop their ability to participate in domestic and international competition."
Opportunities and challenges coexist, and foreign-controlled securities firms bring competition while also increasing the national influence of China's capital market. "From an economic perspective, the entry of foreign brokers will increase the international influence of China's capital market. Foreign brokers will also bring talents and advanced management experience to domestic counterparts, which will help domestic brokers improve their management level, and International brokerage competition, at the same time, prompts domestic brokerages to carry out mergers and acquisitions and reorganization, to enlarge itself and to compete with foreign brokerages. "Yang Delong said.
Since April 1, 2020, the China Securities Regulatory Commission has lifted the restrictions on foreign shares of securities companies. Will more foreign-controlled securities firms appear in the future? Yang Delong believes that this trend is very obvious. "Because the Chinese market is the second largest international market after the United States in terms of capacity, it will attract a large number of foreign brokers to settle in. The outbound domestic brokerages and the entry of foreign brokers are part of the opening of China's capital market. China The continuous opening of the securities market to the outside world is an inevitable trend of development. "
Fu Ziheng also said that the removal of restrictions on foreign shares of securities companies is a major measure for the opening up of China's capital market. The pace of opening up of China's capital market has been steadily advancing, and progress has been good. "In the future, foreign-invested holding companies and sole proprietorships will also appear one after another. Although domestic domestic securities firms are relatively small in scale, they also have the advantages of being more familiar with the domestic market environment and maintaining the stability of domestic customers."
In the 30th anniversary of the establishment of China's capital market in 2020, in the view of Xia Lijun, the key to the "thirty standing" of the capital market is a high degree of marketization, rule of law and internationalization. The successive landing of foreign-funded securities firms is continuously promoting the nationalization of China's capital market. "The marketization of the capital market is the throttle, and the rule of law is the brake, and internationalization is related to the scope of the market, and also to the experience and motivation mechanism of marketization and rule of law reform." (End)