China has steadily promoted institutional opening-up of the financial market, and expanded connectivity between domestic and overseas financial markets.
In terms of financial market opening-up, efforts have been made to continue to improve connectivity schemes between the capital markets of the Chinese mainland and the Hong Kong Special Administrative Region (HKSAR), including the Shanghai-Hong Kong and Shenzhen-Hong Kong stock connects.
This April, China's securities regulator the China Securities Regulatory Commission (CSRC) announced five measures to boost cooperation between the capital markets of the Chinese mainland and Hong Kong. The measures include the expansion of eligible exchange-traded funds (ETFs) under the two stock connect schemes, the incorporation of real estate investment trusts (REITs) into the schemes, the enhancement of the mutual recognition of funds and the support for the listing of leading mainland companies in the Hong Kong market.
"Foreign investors can easily participate in stock trading on two mainland exchanges -- the Shenzhen Stock Exchange and the Shanghai Stock Exchange, through the stock connect schemes. This will make it much easier for them to share the dividends of China's development," said Bonnie Y Chan, the Chief Executive Officer of the Hong Kong Exchanges and Clearing Limited (HKEX).
China has also stepped up efforts to provide greater convenience for foreign institutions to conduct business in the country.
According to CSRC, as of the end of October, it has approved 25 foreign-controlled or wholly-owned securities, funds and futures companies and granted five foreign banks fund custody licenses. And 35 wholly foreign-owned or joint-venture private securities investment fund managers have been registered with the Asset Management Association of China (AMAC).
"We have always emphasized the principles of national treatment and negative list. So after foreign capital enters the market, we have always treated domestic and foreign capital equally, increasing the predictability and transparency of our system," said Shen Bing, the director of the institutions department at the CSRC.
China has revised rules to ease foreign strategic investment in listed firms.
This November, six government departments including the Ministry of Commerce and the CSRC revised rules to allow foreign natural persons to make strategic investment in listed companies, a change from the old rules that only allowed foreign legal persons or organizations to make such investment. Capital requirement is also lowered under the new rules for foreign investors that do not become the controlling shareholders in listed firms.
Tian Xuan, the Dean of the National Institute of Financial Research at Tsinghua University said that the move will lower financing costs for domestic companies, allowing them to focus on long-term investment and innovation.
While working on attracting foreign investment, China has taken measures to encourage domestic enterprises to expand overseas.
Since the beginning of this year, the CSRC has actively helped domestic enterprises go public overseas, especially offering key support to enterprises with strong technological innovation capabilities and large financing needs.
As of the end of October, 195 companies have completed the filing procedures of their first overseas listings.
"This April, the CSRC issued 16 measures for the capital market to serve the high-level development of technology enterprises, proposing to support tech firms to go public overseas in accordance with laws and regulations, and to implement the overseas listing registration management system. By providing smoother channels and conditions, it pledges to help enterprises grow their business through the international capital market, while ensuring the transparency and effectiveness of supervision, to enhance the international competitiveness of enterprises," said Li Zhan, the chief economist of the research department at the China Merchants Fund.
China steadily pushes forward financial opening-up
Chinese Foreign Minister Wang Yi and Russian Foreign Minister Sergey Lavrov agreed on Tuesday to jointly advance the development of bilateral relations and cooperation across various fields.
Wang is on an official visit to Russia where he held talks with Lavrov.
Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, said Chinese President Xi Jinping and Russian President Vladimir Putin have twice engaged in strategic communication so far this year, guiding the steady progress of bilateral relations amid the major changes unseen in a century and making new important deployments to deepen comprehensive strategic coordination between the two countries.
China is willing to work with Russia to implement the consensus reached by the two heads of state, jointly advance the development of bilateral relations and cooperation across various fields, and continue to benefit the two peoples, Wang said.
Wang noted that this year marks the 80th anniversary of the victories of the Chinese People's War of Resistance Against Japanese Aggression, the Soviet Union's Great Patriotic War and the World Anti-Fascist War, as well as the 80th anniversary of the founding of the United Nations (UN).
China is willing to work with Russia to shoulder the special responsibilities as permanent members of the UN Security Council to safeguard the outcomes of World War II, as well as international fairness and justice, he said.
China is also ready to work with Russia to promote a multi-polar world and greater democracy in international relations, so as to make new contributions to the cause of peace and development, he added.
Wang expressed his confidence that under the strategic guidance of the two heads of state, the China-Russia comprehensive strategic partnership of coordination for a new era will gain fresh momentum and reach a new stage.
For his part, Lavrov said that Putin and Xi have injected strong impetus into bilateral strategic coordination, guiding bilateral relations to an unprecedented level.
Russia and China share a long tradition of good-neighborliness and friendship, a long border and broad common interests, Lavrov said, adding that Russia is willing to work with China in accordance with the guiding principles set by the two heads of state to achieve new results in bilateral relations.
Lavrov noted that facing the complex international landscape, Russia and China have maintained close coordination to inject stability to the world.
Russia highly appreciates the global initiatives that China proposed, fully supports China's position on the Taiwan question, and is willing to jointly uphold the purposes and principles of the UN Charter, and safeguard a just and equitable international order, he said.
The two sides agreed to strengthen coordination between the two foreign ministries and prepare for exchanges at all levels later this year, deepen practical cooperation in various fields and consolidate the material foundation of bilateral relations.
They pledged to make the China-Russia Years of Culture a success, enrich cultural exchanges and enhance friendship between the two peoples.
They also agreed to enhance coordination within frameworks such as the Shanghai Cooperation Organization, BRICS, the G20 and the UN to jointly safeguard the legitimate rights and interests of Global South countries.
The two sides also exchanged views on the Ukraine crisis. Lavrov said that Russia eyes for eliminating the root causes of the crisis and is committed to building a lasting security architecture for Eurasia.
Wang reiterated China's consistent position and expressed support for all peace efforts, noting that China is willing to continue to build more international consensus through the Group of Friends for Peace and play a constructive role in promoting a political settlement of the crisis.
The two sides also coordinated their positions on the current international situation, particularly developments in the Asia-Pacific region.
Chinese, Russian FMs agree to deepen practical cooperation, safeguard just int'l order
