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China's capital market opens wider to the world

(People's Daily Online)    09:48, January 02, 2020

A bank member of staff counts money in Taiyuan, north China's Shanxi province. (Photo/Chinanews.com)

In the first 11 months of 2019, the value of stocks and bonds held by foreign investors in China surpassed $100 billion, according to the State Administration of Foreign Exchange.

The face value of bonds held by foreign organizations in China has continued to increase, reaching 1.87 trillion yuan, a new historic high, according to statistics from the China Central Depository & Clearing Co. Ltd.

This performance is attributable to the fact that the country has been rolling out measures to promote the opening up of its financial market, and has pushed domestic standards up to contend with international standards.

MSCI Inc, the world's largest index provider, raised the inclusion factor of all large-cap China A-shares in the MSCI indexes from 15 percent to 20 percent, and added mid-cap China A-shares into MSCI indexes with an inclusion factor of 20 percent.

In April, Chinese bonds were included in the Bloomberg Barclays Global Aggregate Index, becoming the fourth-largest currency component after the US dollar, the Euro and the Japanese yen.

Bloomberg Chairman Peter Grauer said that global banks had predicted that the Bloomberg Barclays index inclusion would attract $700 billion to $800 billion of overseas funds for China in the next five years.

The Chinese capital market is gradually integrating into the global financial system. Recognition of China's opening up from the mainstream indexes signifies that the Chinese market is gaining more attention from international investors in terms of asset allocation, said Peter Wong Tung-shun, Chief Executive Asia-Pacific of The Hongkong and Shanghai Banking Corporation Limited (HSBC).

On June 17, the Shanghai-London Stock Connect program opened for trading as China's brokerage Huatai Securities became the first Chinese company to list in Britain via the long-awaited mechanism.

Wang Chunying with the State Administration of Foreign Exchange said that the reform policies would attract more international capital into the Chinese market, promote investment facilitation for foreign investors, and allow the Chinese stock and bond market to become more globally accepted.

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Web editor: Hongyu, Bianji)

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