China’s Capital Markets Must Become Hub for Global Resource Allocation: Shenzhen Stock Exchange
The chief of the Shenzhen Stock Exchange says that China’s financial liberalisation would see its capital markets eventually assume the role of a global resource allocation hub.
In an interview with the Xinhua News Agency on the topic of financial liberalisation, Wang Jianjun (王建军) said that China’s capital markets “must become a global resource allocation centre with confidence, vision, determination and courage.”
Wang said that the Shenzhen Stock Exchange had worked for many years to promote external opening, engaged in multiple forms of exchange and cooperation with overseas exchanges, and pushed for the inclusion of Chinese A shares in MSCI indexing.
The Shenzhen Stock Exchange has also established cross-border capital service mechanisms in four One Belt One Road nations, including Cambodia, India, Laos and Pakistan.
Wang pointed to the launch of the Bond Connect program, which grants overseas investors access to China’s domestic bond market, as a landmark event in the opening of the Shenzhen Stock exchange to the outside world.
According to Wang the Bond Connect program had brought marked benefits to both Hong Kong and Shenzhen, serving to raise the level of market activity in the former and the international profile of the later.
With respect to further cementing the international position of the Shenzhen Stock Exchange and strengthening external opening, Wang Jianjun said that the the Shenzhen Stock Exchange and international markets exerted a reciprocal influence upon each other, with a number of overseas exchanges studying Shenzhen’s regulatory technology and its SME market.