SCIO briefing on financial policy package to stabilize the market and expectations

Market News International:

My questions are for Mr. Wu. In today's complex and volatile international environment, market concerns are growing that trade tensions might spread to financial and other sectors. Will that affect the opening up of China's capital market? What measures is the CSRC considering in response? Thank you.

Wu Qing:

Thank you for your questions. Opening up is China's basic state policy and an essential prerequisite for the high-quality development of the capital market. In recent years, the CSRC has firmly implemented the CPC Central Committee's important directives on improving the systems and mechanisms for high-standard opening up and promoting high-standard financial opening up. We have prudently advanced the comprehensive two-way opening up of markets, products and institutions, continuously enhanced convenience for foreign investment in domestic markets, and optimized the qualified foreign investor system. Moreover, we have steadily expanded cross-border connectivity, completely removed restrictions on foreign ownership in institutions, and improved the efficiency of overseas listing registration. Currently, foreign-funded securities firms and other foreign investment have become important participants in the A-share market, with foreign investors holding approximately 3 trillion yuan in tradable A-share market value through the QFII program, Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, and other channels.

Despite the current complex and volatile external situation, the strategic direction of China's high-quality economic development remains fairly clear and firm. The stability and predictability of macroeconomic policies have further increased, especially with timely adjustments to these policies. All these factors have further strengthened foreign investors' confidence in participating in China's capital market. Recently, we've observed many foreign institutions upgrading their ratings on Chinese stocks, conducting intensive research on A-share listed companies, and showing broad interest in and positive evaluations of China's capital market and Chinese assets. As General Secretary Xi Jinping has pointed out, investing in China is investing in the future. Looking ahead, the CSRC will unwaveringly advance the high-standard opening up of the capital market, further improve the framework for opening up, and steadily introduce a series of practical measures for opening up. First, we will continue to expand the openness of institutions. We will further optimize market access services for qualified foreign investors, efficiently handling qualification approval and account opening as one integrated process, and further expand their investment scope. We will support eligible foreign-funded institutions in applying for securities and funds investment consultation qualifications. We will encourage foreign investment institutions to establish yuan-denominated funds for investment in China in accordance with regulations. Second, we will further enrich product offerings. We are moving toward opening up the futures and options market to qualified foreign investors, and support domestic and foreign futures exchanges in expanding cooperation on commodity futures settlement price authorization. We will deepen the opening up of exchange bond markets and include REITs and other products as investment choices under the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs. Third, we will continuously deepen market opening up. We will review and optimize the overseas listing registration mechanism, procedures and related elements to improve registration quality and efficiency. We will strongly support Shanghai's development as an international financial center and strengthen Hong Kong's position as an international financial center. We will steadily advance measures for cooperation between Chinese mainland and Hong Kong, such as including yuan stock trading counters in the Stock Connect program and supporting the launch of cross-border investment and risk management products in Hong Kong. Fourth, we will strengthen bilateral and multilateral cross-border regulatory cooperation. We will adhere to respecting development laws and various rules and norms, actively shape a stable, transparent and predictable regulatory environment, and further strengthen cooperation in securities and audit regulation. We will protect the legitimate interests of enterprises in overseas markets. We'll also create conditions to support high-quality Chinese companies listed overseas in returning to stock markets on the Chinese mainland and Hong Kong. At the same time, we'll ensure the protection of investors' legitimate rights and interests. Thank you.