Qiu Yong, Chairman of the Shanghai Stock Exchange: Attracting High Quality Foreign Listed Companies to the Shanghai Stock Exchange to Issue CDRs – Wall Street News

The Shanghai Stock Exchange International Investor Conference 2022 opened in Shanghai on November 9th. Qiu Yong, chairman of the Shanghai Stock Exchange, said in his speech at the scene:The Shanghai Stock Exchange will further enhance and expand the Shanghai-Hong Kong Stock Connect mechanism, strengthen cooperation with key global securities markets, attract high-quality overseas listed companies to issue CDRs on the Shanghai Stock Exchange, and continue to explore innovative mechanisms of ETF trading.

The capital market is one of the areas with the highest degree of commercialization and the most innovative vitality, and it is also one of the most important areas for China’s opening up to the outside world. Qiu Yong said that the Shanghai Stock Exchange will conscientiously implement the country’s new high-level opening cycle, fully play the functional advantages of the exchange, continuously improve the global capital allocation function, further strengthen international attractiveness and competitiveness of the Shanghai Stock Exchange market and strengthen the confidence of domestic and foreign investors., to promote reform and development through opening up.

In recent years, the Shanghai Stock Exchange has been working with all market parties to constantly promote high-level institutional opening and continuously improve relevant institutional arrangements to further facilitate cross-border investment by domestic and foreign investors and better support the development of cross-border enterprise financing The level of internationalization of the SSE market continues to be Has played an active role in serving the construction of the Shanghai international financial center and the country’s opening strategy.

Qiu Yong introduced that the first is the continuous optimization of the stock market interconnection mechanism. “Shanghai-Hong Kong Stock Connect” is a capital market opening measure with Chinese distinctive features and has become an important channel for international investor participation in the A stock market. Following the “Shanghai-London Stock Connect”, the scope of the interconnected depository receipts has been further expanded this year in Germany and Switzerland. Currently, 8 Shanghai-listed companies have issued GDRs on the London and Swiss stock exchanges. The attractiveness of the A-share market to international investors has continued to increase and the share of foreign holdings is increasing.

Second, the opening of the bond market to the outside world has been steadily advanced. We continued to promote the optimization of the panda bond issuance system and actively served the construction of the “Belt and Road” initiative. The total amount of “Belt and Road” bonds and panda bonds issued by foreign issuers on the Stock Exchange Shanghai has exceeded 100 billion yuan. In June of this year, the Shanghai Stock Exchange and China Settlement issued special trade rules to support foreign institutional investors in directly opening securities accounts to participate in the stock exchange’s bond investment. Currently, many foreign institutions have participated in the transaction and the investment channels of foreign funds were further expanded.

Third, the cross-border asset allocation toolbox has been continuously enriched and the variety of cross-border funds has been continuously expanded. Currently, there are 47 cross-border ETF products on the Shanghai Stock Exchange, with a total scale of more than 120 billion yuan.The investment scope covers Hong Kong, China, the United States, Germany, France, Japan and other countries and regions. Continuously deepen the ETF’s interoperability and cooperation mechanism and subsequently launch the China-Japan ETF interoperability mechanism and the Shanghai-Hong Kong ETF interoperability mechanism and the overall operation is stable and efficient.

Qiu Yong said that the Shanghai Stock Exchange will adhere to the principles of commercialization, legalization and internationalization, will implement “system building, non-intervention, zero tolerance” and in accordance with the regulatory concept of “four aspects and a joint force”, constantly promote the institutional opening of the capital market, with a high horizontal opening promotes high quality development.

Continue to optimize the arrangement of the interconnection mechanisms. Further improve and expand the Shanghai-Hong Kong Stock Connect mechanism, strengthen cooperation with key global securities markets, attract high-quality foreign listed companies to issue CDRs on the Shanghai Stock Exchange, and continuously explore innovative ETF trading mechanisms.

Continuously improve the cross-border investment and financing system. Enrich the foreign exchange market product systemto further increase the possibility for foreign issuers and investors to participate in the equity and bond markets of the exchange.

Further strengthen the development of regulatory capacity in an open environment. Coordinate openness and safety, continuously improve risk prevention, early warning and disposal capacity, and continuously improve the risk prevention and control system to maintain the stable functioning of the capital market.

“We also sincerely welcome domestic and foreign investors who actively contribute to exchange reform and development and join hands with all parties to build a capital market ecology of ‘co-build, co-government and share’.” Qiu Yong said.

Source of this article:Times of titlesthe original title: “Qiu Yong, Chairman of the Shanghai Stock Exchange: Attracting High Quality Overseas Listed Companies to the Shanghai Stock Exchange to Issue CDR”