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China's B Share Market Opening to Boost Overseas Investment
With its opening of B Share markets to domestic investors, China's B Share markets have attracted an unprecedented level of focal attention in the international capital arena, a senior banker said Monday in Hong Kong.
Alex Ko, chairman of BNP Paribas Peregrine Capital Limited, told Xinhua that the move, which is arousing the domestic investors to long for the rosy future of China's securities markets, is inevitably to trigger a new round of overseas investment in the country.
Ko said that many of the overseas companies in Hong Kong have recently made inquires about the details of China's opening B Share markets, indicating that more and more international investors are enthusiastic about the country's investment environment.
As an expert on China's securities markets, Ko said, "the strategy to open B Share market provides a platform for exchange and mutual understanding between the domestic and overseas investors."
"It helps investors at home know more about the international practices while drawing an increasing number of investors from the outside world," he added.
BNP Paribas Peregrine Group, a leading investment bank in Asia, is committed to China market and has so far helped nearly 100 Chinese companies list in both the domestic and overseas securities exchanges.
Ko said that at its very beginning of establishment, the B Share markets had drawn close attention of overseas investors, and it is gradually losing attractions with the emerging of H Share and red chips, which are taken as well-organized and operated in terms of the international practices.
Despite a short history, Ko said, China's securities markets have a much brighter future compared with other markets in Asia, since the total market capitalization of Shanghai and Shenzhen stock exchanges is far more than that of the Hong Kong market, which is registered around 4,700 billion HK dollars (US$602.5 billion).
Statistics showed that the total household deposit of foreign exchanges in China is estimated at US$78 billion, and the opening of B Share markets offers more opportunities for these domestic investors, Ko said.
"The markets are becoming more regulated with encouraging signs attracting international investors' attention," Chen Xingdong, chief economist of BNP Paribas Peregrine Securities Limited, told a seminar on investment in China.
To fulfill the demand for high economic growth, he believed that the Chinese government is determined to improve the regulatory framework to go in line with the international standards.
Senior managers of five B Share companies attended the seminar, vowing to be committed more to enhancing their transparency, corporate governance standards and fund-raising capability of the B Share venue in a bid to boost investors' confidence.
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