You are here: Home » International » News » Markets
Business Standard

Chinese regulators vow to expand stock connect in further market opening

Expanding stock connect programme link with Hong Kong among other steps

Topics
Chinese market | Hong Kong | China economy

Bloomberg  |  Beijing 

china, flag
“There remains a huge potential” to usher in foreign capital, Fang said. Photo: Shutterstock

Chinese regulators vowed to accelerate the opening up of its capital and deepen reforms to attract more foreign investors.

The regulator will expand the scope of investments allowed in the stock connect program link with Hong Kong, and allow foreign investors to trade more commodities futures products, China Securities Regulatory Commission Vice Chairman Fang Xinghai said at the China Financial Annual Forum 2020 on Sunday in Beijing.

Officials are planning to announce revised rules on qualified foreign institutional investors as soon as possible to increase their “willingness and confidence” to invest in China, he said. Foreigners currently hold only 4.7 per cent of Chinese stocks in circulation, way below the more than 30 per cent in like Japan and South Korea, he said.

“There remains a huge potential” to usher in foreign capital, Fang said.

China is also opening its financial this year to allow Wall Street giants such as Goldman Sachs Group Inc. to take full ownership of ventures in the country, counting on them to provide fresh investments and foster a more competitive local industry.

The move comes against a backdrop of rising tension with the US over issues including trade and the crackdown on Weighed down by the virus outbreak, China’s economy is poised for its slowest expansion this year in four decades. The participation of foreign investors has helped make the Chinese stock market “more rational” and valuations “more reasonable,” Fang said.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, September 07 2020. 00:44 IST
RECOMMENDED FOR YOU
.