Vice Chairman of the China Securities Regulatory Commission: Capital market opening must prevent the risk of large capital inflows and outflows
China News Service, Beijing, September 4 (Reporter Wang Enbo) Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said in Beijing on the 4th that it is necessary to further strengthen the supervision and risk prevention capabilities in the open capital market environment to prevent large capital inflows and outflows. One of the key tasks.
The 2021 Service Trade Fair will hold the 2021 China International Finance Annual Forum on the same day.
Fang Xinghai said in his speech that the current global epidemic is still continuing and the world economic and financial landscape is evolving profoundly. Adhering to open cooperation is an inevitable choice to cope with global challenges.
The China Securities Regulatory Commission will continue to unswervingly expand opening up, coordinate development and security, and launch more pragmatic opening-up measures.
He mentioned that it is necessary to further promote the institutional opening of the capital market, implement the new regulations for qualified foreign investors, and facilitate the allocation of RMB assets by foreign investors.
These include expanding the opening up of commodity and financial futures markets, introducing more international products, exploring diversified opening paths such as settlement price authorization, deepening domestic and foreign capital market interconnection, improving and expanding the Shanghai-London Stock Connect mechanism, and improving domestic issuance by overseas entities The listing system will improve the regulatory system for overseas listing of enterprises.
Fang Xinghai also emphasized that Hong Kong's role in the opening of China's capital market will be further brought into play.
The China Securities Regulatory Commission will resolutely safeguard the status of Hong Kong as an international financial center, and continue to support the Mainland and Hong Kong to carry out all-round, multi-level practical cooperation, including further optimizing the Shanghai-Shenzhen-Hong Kong Stock Connect mechanism, enriching the Shanghai-Shenzhen-Hong Kong Stock Connect standard, and steadily launching A-shares in Hong Kong Various work on index futures, support domestic and foreign companies to go public in Hong Kong, etc.
The open environment also places requirements on supervision and risk prevention capabilities.
Fang Xinghai said that we must adhere to the requirements of liberalization, visibility, and control, strengthen the monitoring, analysis and judgment of cross-border investment behavior and capital flows in the capital market, maintain the stable operation of the capital market, and prevent the risk of large capital inflows and outflows. .
He said that with the adjustment of international monetary policy, it is normal for some foreign capital to make some adjustments in asset allocation and will not cause large inflows and outflows.
However, it is also necessary to prevent individual foreign-funded institutions from maliciously entering and exiting through investment activities to drive changes in the entire market.
He also said that it is necessary to deepen cross-border supervision cooperation, properly solve the problems encountered in supervision cooperation, effectively maintain the normal order of cross-border investment and financing activities, and create a predictable regulatory and institutional environment.
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