(Service Trade Commission in 2020) Vice Chairman of China Securities Regulatory Commission: Chinese companies continue to go public in the United States
China News Agency, Beijing, September 6 (Reporter Wang Enbo) Fang Xinghai, vice chairman of the China Securities Regulatory Commission, pointed out in Beijing on the 6th that Chinese companies have continued to go to the US for listing, and there is also great potential for foreign funds to enter the Chinese stock market.
The 2020 China International Service Trade Fair will hold the 2020 China International Finance Annual Forum on the same day.
Fang Xinghai said when attending the meeting that with the continuous expansion and opening of China's capital market in recent years, it has become more convenient for companies to internationalize financing. While attracting foreign investors, Chinese companies have also made great strides to go global.
From 2016 to June 30, 2020, a total of 136 domestic companies issued and listed overseas, with a financing amount of 732.2 billion Hong Kong dollars.
He said that Chinese companies' overseas financing not only provides impetus for their own development, but also builds a platform for foreign investors to share the achievements of China's reform and opening up.
In the context of enhanced communication between the regulatory authorities of China and the United States, the pace of Chinese companies' listing in the United States has not stopped. "Recently, Shell Looking for Real Estate has been listed on the New York Stock Exchange and has been widely welcomed by investors. The stock price has also performed very well after listing."
Expanding opening up has promoted the improvement of China's capital market itself, and has also promoted the high-quality development of the financial industry and the entire economy.
Fang Xinghai said that a prominent problem in China's financial industry is the low proportion of direct financing, especially equity financing, and a large amount of savings is converted into investment in the form of debt, which raises the macro leverage ratio and increases the risk of the financial system.
Enlarging the capital market through opening up and development and significantly increasing the proportion of equity financing is of great significance to optimizing the financial structure and improving the efficiency of financial supply.
Especially in the stage of innovation-driven development, China needs more equity investment that can absorb risks to cultivate and support innovative enterprises.
Fang Xinghai said that as of September 3, the market value of Chinese stocks held by foreign investors through the Shanghai-Shenzhen-Hong Kong Stock Connect reached RMB 2.01 trillion, accounting for 3.28% of the market value of A shares; plus qualified foreign institutional investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII) hold shares. All foreign capital holds 4.69% of the value of China’s tradable stock market, which is very low compared with the stock markets of Japan and South Korea. There is great potential.
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