CHINA is trying to lure more foreign capital into the mainland’s financial market and will stick to the stance of reform and opening-up, the country’s top securities regulator said today during a press conference amid recent regulatory signals for further financial reforms.
Fang Xinghai, vice president of the China Securities Regulatory Commission (CSRC), said China will attract more foreign investors to participate in China’s futures industry to enhance China’s weight on commodity pricing.”
Commodity is more about the international market,” Fang said. “To isolate foreign investors’ participation in the mainland’s market will hinder China to achieve bigger role on the global stage.”
Fang also said that the regulator will study more foreign ownership of brokerages gradually in the future, without giving further timetable on the move. Overseas banks now can own up to 49 percent ownership in securities and fund-management joint ventures in the nation, while Hong Kong and Macau companies are allowed taking control of their ventures under economic partnership agreements.
The 49-year-old vice chairman also pledged to keep studying the openings of the country’s international bourse to allow foreign companies to list in the mainland market. However he pointed out several technical obstacles that may delay the plan, naming different standards on accounting, regulation and information disclosure between domestic and foreign markets.The conference held on Sunday was jointly attended by Liu Shiyu, chairman of the country’s stock market regulator, and Li Chao, another vice chairman of CSRC who oversees country’s funds and private equity market.
Liu, who took helmet of CSRC a year ago, said China will allow more companies to list on its stock market to boost support for its economy on Sunday, dismissing concerns that more supplies of shares can depress the market.
The media conference of CSRC came on heels of tightening regulation on China’s insurers, indicating the country’s faster pace of financial reforms. Last Friday, China has reportedly appointed financial-sector expert Guo Shuqing as the new head of China Banking Regulatory Commission, according to some local media reports but the CBRC has yet to confirm, to tackle growing risks from China’s massive shadow-banking sector and booming asset-management products.
While China’s insurance regulator banned several players, including Evergrande Life Insurance Co, from stock investments for one year, stepping up its crackdown on the industry’s most “radical” investors in a bid to rein in risks.