Zhongxin Finance, May 26. According to the news released by the official WeChat account of the Shenzhen Stock Exchange on the evening of the 25th, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, delivered a speech at the Shenzhen Stock Exchange's 2022 Global Investor Conference.
Fang Xinghai said that since the beginning of this year, in the face of challenges such as the US dollar interest rate hike, the Russian-Ukrainian conflict, and the domestic epidemic, we have strengthened communication with international investors and delivered policy information in a timely manner, which has achieved good results. It is expected that this year, foreign investment in the A-share market will continue for the past few years. year trend.
Fang Xinghai emphasized that China's capital market has attached great importance to opening up since its inception.
In recent years, in the face of the impact of the epidemic and the complex and volatile international economic and financial situation, the China Securities Regulatory Commission has accelerated the implementation of the two-way opening up of the capital market, which has achieved remarkable results and effectively promoted the high-quality development of the capital market.
He mentioned that the CSRC will continue to expand the channels for foreign investment in the A-share market, continue to improve the Shanghai-Shenzhen-Hong Kong Stock Connect mechanism, expand the targets of the Shanghai-Shenzhen-Hong Kong Stock Connect, promote the implementation of the new QFII regulations, and promote the gradual increase in the proportion of A shares in the international index. The convenience of participating in A-share investment has been significantly improved.
Up to now, foreign capital has accumulated a net investment of more than 1.6 trillion yuan in A-shares through Shanghai-Shenzhen Stock Connect, and foreign capital holds about 5% of the circulating market value of A-shares.
On a monthly basis, there was a net inflow of foreign capital into A-shares in January and February this year, a net outflow in March, a net inflow in April, and a net inflow in May.
Foreign investment in my country's capital market has shown obvious resilience.
At the same time, the China Securities Regulatory Commission launched the Shanghai-London Stock Connect mechanism.
Fang Xinghai revealed that four Shanghai-listed companies including Huatai Securities completed the issuance of GDRs (Global Depository Receipts) and listed them on the London Stock Exchange, raising US$5.84 billion.
At the beginning of this year, we expanded the Shanghai-London Stock Connect mechanism in a timely manner, including domestic companies listed on the Shenzhen Stock Exchange, and overseas to the Swiss and German markets, realizing the China-Europe Stock Connect.
At present, seven companies listed in Shanghai and Shenzhen have announced plans to issue GDRs under the China-Europe Connect mechanism.
Regarding the opening of the futures market to the outside world, Fang Xinghai said that the international varieties of commodity futures and options continue to increase. At present, a total of 9 varieties are open to foreign investors, and the proportion of international investors' transactions and positions is between 5-10%.
Pulp futures have become my country's first futures product to "go global" through settlement prices, and low-sulfur fuel oil futures have achieved cross-border settlement.
Supported the launch of MSCI A50 index futures by the Hong Kong Stock Exchange. After the contract was listed, it performed well, and the size of the open interest has reached 2 billion US dollars.
Last month, the "Futures and Derivatives Law" was promulgated smoothly, filling the gap in the legal system of foreign-related futures trading and laying a solid foundation for the opening and development of my country's futures market.
Fang Xinghai mentioned that we have fully liberalized the restrictions on foreign shareholding ratios in securities and futures fund companies, and foreign institutions have achieved national treatment in terms of business scope and regulatory requirements, attracting more and more leading international foreign institutions to expand their business in China.
At present, 12 foreign-controlled or wholly-owned securities fund and futures companies including JPMorgan Chase, UBS Securities, Nomura Securities and Fidelity International have been approved, and 3 foreign banks including Citibank have obtained fund custody qualifications in their Chinese subsidiaries.
Recently, the China Securities Regulatory Commission issued the "Opinions on Accelerating the Promotion of High-Quality Development of the Public Fund Industry", which clearly supports overseas institutions with long-term investment intentions in China's capital market to establish fund management companies or expand their shareholding ratios.