RMB 600 mln worth of foreign capital likely to enter China’s stock market this year
Jan 14, 2019 (China Knowledge) - According to a senior securities regulator in China, the country’s stock market will likely see an inflow of RMB 600 million of net foreign capital this year, doubling from last year.
Last year, the China Securities Regulatory Commission (CSRC) recorded a net inflow of RMB 300 billion worth of foreign capital.
The projected rise in foreign capital coming to China this year can be attributed to increasing investor confidence in the Chinese economy, increased access from stock connect schemes and inclusion of A-shares in to the MSCI indices.
At the same time, the CSRC will continue to introduce more medium- and long-term capital into the stock market and the futures market.
Last year, Chinese regulators introduced a host of measures to open up its financial markets such as increasing foreign ownership of securities joint ventures to 51% and eventually allowing full ownership two years later.
With the new measures, investment banks such as UBS, Citigroup and Nomura Holdings have already applied for or set-up majority-owned joint ventures with even more companies likely to join the market when full foreign ownership is allowed.
China will continue to place emphasis on developing its capital market to stabilize its macro leverage ratio and support innovation-driven growth.
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