China will continue to open capital markets to foreign investors

BEIJING, Sept. 6 (Reuters) – China will further open its capital markets to foreign investors, the country’s top securities regulator said on Monday, adding that it will pursue pragmatic cross-border cooperation to regulate Chinese listed companies. abroad.

Global investors have been frightened in recent months by a wave of Chinese regulations targeting sectors ranging from technology to private tutoring. U.S. plans to expel non-compliant Chinese companies from U.S. stock markets have fueled concern.

“Openness and cooperation are the inevitable trend in the integrated development of global capital markets,” Yi Huiman, chairman of the China Securities Regulatory Commission (CSRC), Yi Huiman, said at a conference organized by the World Federation of Exchanges.

China is studying other measures, including expanding the scope of the stock connection scheme linking China and Hong Kong and improving the Shanghai Connect-Stock Stock program, Yi said in a speech posted on the website of the CSRC.

Meanwhile, CSRC will conduct “pragmatic” cooperation in areas such as overseeing foreign-listed Chinese companies, cross-border auditing and law enforcement, he added.

Yi said that given the intertwined global markets, governments should abandon the mentality of a “zero-sum game,” as companies and investors share both the boom and the loss.

Global financial centers should facilitate cross-border financing “rather than becoming the platforms and tools that governments use to sanction other countries,” Yi said, not to mention the United States.

Yi’s speech came a day after CSRC Vice President Fang Xinghai made similar commitments to further deregulate Chinese markets.

China will expand foreign capital channels to invest in Chinese futures and securities markets and further facilitate the issuance of yuan-denominated “Panda bonds” by foreign institutions, Fang said at a separate conference on Sunday.

China will also improve national listing rules for overseas entities, as well as regulations on listings of Chinese companies abroad, Fang said in a speech also posted on the CSRC website.

Fang also pledged to safeguard Hong Kong’s status as a global financial center, saying Beijing supports domestic companies listed on Hong Kong.

(This story is shown to correct the typographical error in the name of the CSRC president in the third paragraph)

Reports by Samuel Shen and Ryan Woo, edited by Timothy Heritage and Alexander Smith

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