China's securities regulator pledges further institutional opening-up of the capital market

China's securities regulator has pledged further institutional opening-up of the capital market.

As part of the fifth Hongqiao International Economic Forum amid the China International Import Expo, a parallel session on high-quality opening-up of China's capital market was held on Saturday.

The sub-forum provides a platform for policy makers and global industry leaders to engage in constructive dialogue on new policies and measures that advance the all-round institutional opening up of China's capital market and enhance Shanghai's capacity and capability as an international financial center.

It focuses on three themes – tech innovation enhancing the resilience and vitality of economic development, new opportunities arising from high-quality opening up of China's capital market, and asset management industry facilitating the development of Shanghai global asset management center.

The discussions aims to offer suggestions and perspectives for China's capital market to improve capital allocation efficiency and to support the real economy in a more efficient way.

Fang Xinghai, vice chairman of China Securities Regulatory Commission, the country's securities watchdog, said at the forum that the commission will promote high-quality development of the capital market to lure more medium and long-term capital from home and abroad.

Structurally, allocation and long-term funds have maintained a net inflow so far this year, indicating that foreign investors are bullish on the long-term investment value of A-shares and reflecting their confidence in China's long-term economic upturn, Fang said.

The commission pledged to firmly introduce more foreign institutional investors of all types to promote the development of the institutional investor force in China's capital market.

In the first 10 months of this year, a total of 289 companies launched their initial public offerings on the two major bourses in Shanghai and Shenzhen.

"A number of sci-tech innovative enterprises with advanced technologies and market recognition have entered the capital market, which also provided domestic and foreign investors with richer and more diversified investment opportunities," Fang said.

Promoting a market-oriented, law-based and internationalized business environment is the key to institutional opening-up, he said.

He pledged that the commission will continue to improve relevant policies and systems, further facilitate cross-border investment by domestic and foreign investors, and better support the cross-border financing for enterprises.

Meanwhile, the market inter-connectivity mechanisms, such as the issuance of global depository receipts (GDR) and Chinese depository receipts (CDR), will be optimized, while the implementation of the reforms on overseas listing system will be pushed ahead to support all types of enterprises to list overseas in accordance with laws.