The Chinese government plans to expand its stock market programme to boost financial market reopening in the country amid the Covid-19 pandemic, media reports said.
The move comes at a time when China and the US are improving their trading ties, while the Chinese economy sees the slowest expansion this year in four decades due to the pandemic.
Fang Xinghai, vice-chairman of the CSRC, told the media, “The regulator will expand the scope of investments allowed in the stock connect programme link with Hong Kong, and allow foreign investors to trade more commodities futures products. Officials are planning to announce revised rules on qualified foreign institutional investors as soon as possible to increase their willingness and confidence to invest in China.”
Mr. Fang Xinghai added that non-Chinese companies only hold only 4.7 percent in the Chinese stocks in circulation compared to 30 percent in markets like Japan and South Korea. Furthermore, the Chinese stock market is becoming more rational and reasonable because of foreign investors.
It is reported that China will fully reopen its financial markets this year to pave the way for companies such as Goldman Sachs to take full ownership of ventures in China. Furthermore, foreign companies expect to foster local industries in the country.
The government is pushing to boost Yuan usage in international transactions while bringing more foreign capital. It is reported that the percentage of foreigner’s holdings of domestic assets surged 37 percent to $1.1 trillion this year.