The Central Government Attaches Great Importance To The Real Intention Of Shanghai Hong Kong Tong.

As an important mechanism for the interconnection between Shanghai and Hong Kong stock markets, Shanghai and Hong Kong have played a decisive role in both the two-way flow of market capital and the internationalization of RMB.

Since April this year, the progress of Shanghai Hong Kong and Shanghai Tong's progress has been speeded up. During this period, many tests have been carried out to ensure the smooth opening of Shanghai and Hong Kong links.

In November 8th this year, the opening ceremony of Shanghai Hong Kong Tong was carried out in the trading hall of the Shanghai Stock Exchange. At the same time, the HKEx also conducted related drills. To this end, although Shanghai and Hong Kong Tong still has no specific "opening" time, but from a series of initiatives, the distance from its "opening" will not be too far away.

In the past six months, the central government has attached great importance to the promotion process of Shanghai and Hong Kong, and the degree of attention has aroused the thinking of all sectors of society.

Obviously, from the strategic point of view of the central government, the "opening up" of Shanghai and Hong Kong has special significance.

On the one hand, Shanghai and Hong Kong are Hongkong and mainland markets. capital The two-way flow function has been realized, and the offshore RMB market in Hongkong has been activated, which has widened the investment channels of these fluidity. On the other hand, Shanghai Hong Kong and Hong Kong has promoted the internationalization process of RMB to a large extent, and directly raised the voice of RMB in the international market.

For example, Shanghai and Hong Kong have given many expectations to the two markets. Among them, widening the investment channels of funds and enhancing the interconnection and interoperability between the two markets is one of its main functions. At the same time, with the help of Shanghai and Hong Kong's "opening to traffic" to activate the offshore RMB market in Hongkong, it is of great significance to broaden the investment channels for them.

Incomplete data statistics At present, the offshore renminbi market in Hongkong is nearly trillion yuan. Unfortunately, this type of liquidity is affected by institutional restrictions or other impediments in the two markets, leading to more than 80% of liquidity remaining in banks in demand deposits or deposit certificates. Obviously, this is a helpless way of lacking investment channels. Over the long term, a lot of liquidity has been met with cold reception because of its lack of value added functions.

At this point, Shanghai and Hong Kong through "opening to traffic" opened up investment channels for their restrictions, interconnection mechanism has brought enormous value preservation and value-added space. On the other hand, once these large scale liquidity flows to the mainland market, it will bring considerable new liquidity expectations to the mainland market.

For example, Shanghai-Hongkong Stock Connect The core value of "opening to traffic" is to promote the interconnection and exchange between the two markets and to further open the capital market. From the specific rules, in order to reduce the exchange restrictions between the RMB and Hong Kong dollar, Shanghai and Hong Kong both use Renminbi as the settlement currency. In essence, this is the true portrayal of promoting the internationalization of RMB.

In recent years, the internationalization of RMB has obviously increased. The RMB first developed from the trade settlement currency of the neighboring countries to the regional investment currency, and then became the international reserve currency. Between June and July this year, China announced 5 RMB offshore trading markets. Then, in September 29th of this year, the China foreign exchange trading center officially announced the direct trading of RMB against the euro in the interbank foreign exchange market.

In this regard, the pushing process of RMB has gone deep into Europe, and has been developing at an amazing speed.

Today, the APEC summit in Beijing is also a true portrayal of the speed of RMB internationalization. Obviously, the acceleration of internationalization of RMB has become an irreversible trend. On the international stage, the strength of RMB's discourse will also affect China's economic spanformation and development.

Therefore, the Shanghai Hong Kong pass as a far-reaching measure will accelerate the internationalization of RMB and enhance the status of RMB. Perhaps this is the central intention of the Central Committee to attach great importance to the "Shanghai Hong Kong Link".

Guo Shiliang believes that "Shanghai and Hong Kong through" is an important strategic layout of the Central Committee, and its "opening" will directly affect the next strategic deployment of the Central Committee. Obviously, Shanghai and Hong Kong through "opening to traffic" is already an irreversible trend. For now, everything is ready for the last shot.