BEIJING: China’s ongoing opening up of its capital market, with the connect programmes between the mainland and Hong Kong markets serving as one good example, will be further advanced to inject more vitality into the markets and facilitate the country’s high-quality economic growth, say officials and industry experts.
The China Securities Regulatory Commission (CSRC), the country’s top stock market watchdog, is advancing a new round of deepened and comprehensive reform and opening up of the Chinese capital market at a faster pace, CSRC chairman Wu Qing said on Monday.
Wu made the comments during a forum which was held in Hong Kong on Monday to celebrate the 10th anniversary of the connectivity programmes.
More pragmatic measures will be introduced to further open up the market and facilitate cross-border investment and financing, he added.
By firmly adhering to market-based and internationally accepted practices, as well as the rule of law, the CSRC will create a better environment for international investors to further tap into the Chinese market, Wu said.
During the same forum on Monday, CSRC vice-chairman Li Ming said that efforts will be made to further optimise and complete the connectivity programmes between the mainland and Hong Kong markets.
The investable targets included in the stock connect mechanism linking the Shanghai, Shenzhen and Hong Kong bourses will be expanded, Li said.
Amid the steady increase in trading value, the connect programmes have effectively improved market liquidity and buoyed trading volume.
The markets’ appeal has also risen significantly. The connect programmes have helped the A-share market to be included into well-established international indexes such as the MSCI, attracting more overseas long-term capital to increase their exposure to A shares, said Li.
The People’s Bank of China, the country’s central bank, said foreign institutions and individuals held 3.13 trillion yuan or about US$430bil of Chinese onshore stocks as of the end of September.
It was the first time for the indicator to exceed the three-trillion-yuan level since October 2023.
Bonnie Y Chan, chief executive of Hong Kong Exchanges and Clearing Ltd, said at the Monday forum that nearly 77% of participating foreign investors have held A shares via the stock connect mechanism.
The trading value of the southbound and northbound legs of the stock connect programme reached HK$280bil or about US$36bil and 510 billion yuan, respectively, in October, both hitting record highs. — China Daily/ANN
