China pledges to open its capital markets to foreign investors

In a statement China’s top securities regulator said, Beijing plans on further opening its capital markets to foreign investors with an aim to pursue pragmatic cross-border cooperation to regulate overseas-listed Chinese companies.

In recent months, global investors have been spooked by opaque Chinese regulations which targeted sectors ranging from technology to private tutoring. On its part the United States plans on kicking out non-compliant Chinese companies off its exchanges.

“Opening-up and cooperation is the inevitable trend in the integrated development of global capital markets,” said China Securities Regulatory Commission (CSRC) Chairman Yi Huiman during a conference organized by the World Federation of Exchanges.

He went on to add, Beijing is studying further measures, including expanding the scope of the stock that connects schemes linking China and Hong Kong while improving the Shanghai-London Stock Connect program.

CSRC will conduct “pragmatic” cooperation in areas such as supervision of overseas-listed Chinese companies, cross-border auditing and law enforcement. Given interwoven global markets, governments should abandon the mentality of a “zero-sum game”, as companies and investors share both the boom and the bust.

Underscoring concerns revolving around US sanctions, Yi said, global financial centers should facilitate cross-border financing, “rather than become the platforms and tools governments use to sanction other countries”.

Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

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