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China Plays Increasingly Important Role in Global Capital Market
With its increasing economic size and prospering stock market, China is playing an increasingly important role in the global capital market, Andrew Sheng, chairman of Hong Kong's Securities and Futures Commission (SFC) said Thursday.
Sheng made the remarks at a conference on HK-listed mainland companies hosted by the Hong Kong Exchange and Clearing Limited. (HKEx).
According to SFC figures, the capital value of the Chinese mainland's stock market stood at US$581 billion by the end of 2000, ranking 11th in the world.
Combined with HK's US$623 billion stock market value, China's stock market capitalization topped US$1.2 trillion, ranking sixth worldwide.
Sheng pointed out that the development of the mainland has greatly benefited Hong Kong, while the latter has become an important financing center for the mainland, thanks to its tested institutions and legal system, world-class professionals, rich experience and its status as an international financial center.
According SFC figures, mainland firms raised US$44 billion through the HKEx in 2000, accounting for 74 percent of the total funds raised through the HKEx in the same period.
This compares with US$18 billion raised by Chinese firms from domestic stock markets in 2000.
Sheng noted that China's capital market now runs on two rails, one is the international rail represented by HK, and the other the domestic rail represented by the Shanghai and Shenzhen stock exchanges.
The two rails will be connected when the Renminbi yuan becomes freely convertible, he said.
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