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CSRC Advisor: Right Time for China to Attract Foreign Investors
Liang Dingbang, advisor to China Securities Regulatory Commission (CSRC) said at the ongoing China Capital Market Annual Summit that China can not wait until its securities market has been completely standardized but consider at the right time now touting promising foreign investors to boost the its B share market.
He said that the current trading value of B share makes only 2.8 percent of that of A share and that even if all the share portions are traded in foreign capital it still takes a very small proportion.
Take Taiwan for example, said Liang, during past decade's reform, Taiwan absorbed over US$ 30 billion of foreign capital, or 10 percent of its total trading amount.
Why should we choose some promising investors, Liang explained that it is a move to allure foreign fund which have been sincerely dedicated to stock investment and can also avoid damage from a roll-in of hedge funds.
Liang said that after China leads in foreign investors, management level, information disclosure and accounting criteria of listed companies will be greatly improved, and meanwhile, due to mass introduction of securities professionals, China's level in stock analysis will also get enhanced.
Some worry that foreign investors will withdraw after they earn enough, Liang said that most investors are optimistic about China's future, they hope to invest in China's mainland after they raise enough funds. The key problem is that we should improve our transparency in industry policy, and only by doing so, can foreign firms consider their development prospect in China.
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.
By PD Online staff member Li Yan
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