CSRC steps up opening of China capital market

January 20, 2015 09:32
Xiao Gang says the CSRC has scrapped the profit requirement for companies wishing to list offshore. Photo: Bloomberg

China's securities regulator is stepping up the opening of the country's capital and wealth management markets, the Hong Kong Economic Journal reported Tuesday.

Xiao Gang, chairman of the China Securities Regulatory Commission (CSRC), said the government supports the development of cross-border wealth management services.

This follows the opening of cross-border stock trading with the launch of the Shanghai-Hong Kong Stock Connect in November.

The trading link between the Shanghai and Hong Kong exchanges has created room for related investment services such as wealth management, Xiao said.

Market participants expect a similar stock through train between Hong Kong and Shenzhen despite lukewarm trading with Shanghai.

Xiao said the lackluster activity reflects differences in market rules and regulations between the two sides.

Qi Bin, CSRC director of international cooperation, said the watchdog will work for the inclusion of Shanghai-listed A shares in global indices such as MSCI and FTSE by unifying regulatory standards for stocks registered offshore.

A monitoring and control system will be established to mitigate market risks from the two-way flow of capital, Qi said.

Meanwhile, the CSRC has scrapped the profit requirement for companies wishing to list overseas.

Xiao said efforts are under way to expand an investment scheme for qualified domestic institutional investors and speed up cross-border mutual recognition of funds, he said.

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