The China Securities Regulatory Commission announced on Friday (2nd) that it will further expand the interconnection arrangement. Financial Secretary Chen Maobo expressed his sincere thanks on his blog today (4th) on behalf of the SAR government, and believes that it has brought good news to the deepening development of Hong Kong's capital market.
He pointed out that the budget announced at the beginning of this year to set up a working group has prepared for technical challenges, including plans to establish a "dual currency stock market maker" system and waive stamp duty on market maker-related stock transactions.
He also believes that the new arrangement on the mainland can help the internationalisation of the renminbi and promote the development of Hong Kong as a more comprehensive offshore renminbi hub and risk management centre.
Financial Secretary Paul Chan.
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The development of Hong Kong into the country's international financial centre
Chen Maobo said that since the country's reform and opening up, Hong Kong's capital market has achieved broad and in-depth development. Through continuous construction and improvement of financial infrastructure, the pooling of international funds and talents, coupled with the spirit of innovation and reform, with an efficient and flexible market, innovation and diversity financial services and products to serve the needs of countries at different stages of development.
In the process, Hong Kong has also developed into the country's international financial center, and has created its own sustainable economic development.
Looking back on the development process, Chen pointed out that in general, "find the right direction, move forward firmly, steadily advance, and continue to deepen." He explained that taking the development of China Unicom's capital markets in Hong Kong and the mainland as an example, in 2004, local banks launched personal RMB The business has continued to develop since then, and has been extended to cover the needs of companies for foreign exchange and cross-border trade settlement; the opening of the Shanghai-Hong Kong Stock Connect in 2014 created a channel for investors and companies to directly participate in the stock markets of the two places.
Since then, the development has been gradually deepened, from Shanghai-Hong Kong Stock Connect to Shenzhen-Hong Kong Stock Connect, from stocks to bonds, from the spot market to derivatives, providing international and mainland investors with more and more diversified investment options and risk management tools.
Chen also pointed out that with the successful practice of various interconnection mechanisms in the two markets, a risk-controlled, onshore transaction model has been created, which has facilitated mutual benefit and win-win for both onshore and offshore investors. Unseen cross-border market liquidity and vitality also assist the orderly opening of the country's financial market to the outside world.
Chen Maobo thanked the China Securities Regulatory Commission for the arrangement.
(Chen Maobo's blog)
Government thanks China Securities Regulatory Commission for further expansion of connectivity arrangements
The China Securities Regulatory Commission announced on Friday that it will further expand the interconnection arrangement and will further accelerate this development, bringing good news to the deepening development of Hong Kong's capital market.
Chen Maobo quoted Fang Xinghai, vice chairman of the China Securities Regulatory Commission, as saying last week that 1) it will promote the inclusion of qualified securities of overseas companies listed in Hong Kong as eligible securities for Southbound Stock Connect; 2) to study allowing the addition of RMB stock trading counters in Southbound Trading; 3) Support Hong Kong to launch treasury bond futures.
He further explained that, firstly, it allows mainland investors to invest in the stocks of overseas companies through Southbound Stock Connect in a risk-controlled environment, which will help increase the liquidity and valuation of these securities, and help attract more businesses that have close business with the mainland. The listing of high-quality and well-known foreign companies in Hong Kong will enhance the competitiveness and uniqueness of Hong Kong as the country's international financial center, and will also help the mainland's financial market to further open up with high quality.
▼On February 23, Chen Maobo published the last "Financial Budget" of the current government ▼
The government will submit the Hong Kong Stock Connect-related bill to the Legislative Council within this year
In the second aspect, it can play two birds with one stone. While reducing the exchange risk and cost of mainland investors, it can also increase the choice of RMB investment instruments in Hong Kong, which is beneficial to deepen the liquidity and depth of the offshore RMB market.
"One stock, dual currency option" provides investors with greater trading flexibility and incentives.
He pointed out that the working group announced in the Budget earlier this year has prepared for technical challenges, including plans to establish a "dual-currency stock market maker" system and waive stamp duty on stock transactions related to market makers to increase the Liquidity of RMB-denominated stocks.
The Government will plan to introduce the relevant bill to the Legislative Council within this year.
Thirdly, another effective risk management tool will be introduced for investment in government bonds through channels such as "Bond Connect", together with the "Interest Rate Swap Connect" announced earlier, allowing foreign investors to hedge against the risk of fluctuations in the interest rates of RMB assets.
By facilitating better management of related investment risks by Hong Kong and overseas institutions, it will help improve the liquidity of the government bond market and reduce the bid-ask spread, further expand the international participation and recognition of the government bond market, and also help the internationalization of the RMB and the development of Hong Kong. For a more comprehensive offshore RMB hub and risk management center.
On September 2, the China Securities Regulatory Commission announced the further expansion of the interconnection arrangement.
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Chen Maobo concluded that the interconnection arrangements of the financial markets of China and Hong Kong have been deepening and broadening, and the above three measures have marked a new stage.
In the process of promoting the two-way opening and high-quality development of the capital market in the Mainland, Hong Kong, as the country's international financial center, the offshore market at home and abroad, the only financial center with both a common law system and a smooth connection with the international market, Hong Kong The capital market is also standing at a new starting point in a new stage.
He finally emphasized that with innovative thinking, continuous change, and more proactively aligning with the country's development strategy and needs, leading Hong Kong's financial market and services to open up greater development space, better serving the real economy and the overall development of the country, and serving Hong Kong and the country's overall development. The country makes an important and irreplaceable contribution.
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