Foreigners Have Put Over USD34.1 Billion Into Chinese Markets This Year, CSRC Vice-Chief Says
Liao Shumin
DATE:  Nov 25 2019
/ SOURCE:  yicai
Foreigners Have Put Over USD34.1 Billion Into Chinese Markets This Year, CSRC Vice-Chief Says Foreigners Have Put Over USD34.1 Billion Into Chinese Markets This Year, CSRC Vice-Chief Says

(Yicai Global) Nov. 25 -- Overseas investors are flocking to Chinese stock markets as an increasing number of global index providers have woken up to new investment opportunities while the main securities regulator's vice chief says that investing in the growing economy is likely to become even easier. 

Net inflows of foreign capital have reached over CNY240 billion (USD34.1 billion) since the beginning of this year, demonstrating international investors' confidence in China's capital market reform and the economy's healthy long-term development, Li Chao, vice chairman of the China Securities Regulatory Commission, said at a conference on Nov. 23. 

Amid the loosening restrictions, international financial giants such as MSCI, FTSE Russell and S&P Dow Jones have boosted the weighting of Chinese equities in their global benchmarks this year. 

China will scrap its ownership limitations on securities, futures trading, and fund management companies next year, as well as speed up the revision of its rules regarding the Qualified Foreign Institutional Investor and Renminbi Qualified Foreign Institutional Investor programs to lower thresholds, Li said, adding that China will also further open up its bond market for overseas investors.

In the first ten months of this year, Chinese capital markets surpassed multiple milestones from a year ago, according to Li. Some 143 enterprises went public on the Shanghai and Shenzhen Stock Exchanges, raising CNY162.4 billion. Refinancing of mainland-listed firms reached CNY839.4 billion and mergers and acquisitions tallied CNY1.42 trillion (USD201.8 billion). 

During that time, China issued CNY6.16 trillion in bonds, and corporate bonds made up more than 40 percent of that, Li added. 

Editor: Emmi Laine 

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Keywords:   Foreign Capital,China's Stock Market,CSRC,Overseas Investors