Launch Shanghai And Hong Kong To Achieve Two-Way Opening Of China'S Financial Market

Li Xiaojia: Hongkong can act as an experimental field for RMB exchange rate and interest rate reform.

Li Xiaojia, chief executive of HKEx, wrote on the Hong Kong exchange's official website yesterday.

China's capital market has entered a new era of two-way opening. The opening and internationalization of China's financial market includes two important paths: first, directly invite in, go out directly; two, "group" please come in, "group" go out.

Li Xiaojia believes that the two-way opening of China's financial market will help to optimize the national balance sheet and enhance the total net income of overseas countries. At the same time, it can also reduce the cost of financing a country from the international market by adopting diversified financing channels and products, and encourage entrepreneurship and innovation.

China

There are two ways to open and internationalize: first, directly invite in, go out directly; two, "group" please come in, "group" go out.

Li Xiaojia stressed that in today's China's capital market, Shanghai and Hong Kong Tong is a best practice of "group tour".

In Shanghai and Hong Kong through the mechanism, investors did not carry the money to cross the border, only the trading order through the two exchanges to achieve the maximum price discovery, and the stock settlement and capital pfer through the local clearing place in the first place to reduce, and then net settlement with the final settlement of the other settlement, to achieve the minimum cross-border flow.

Shanghai and Hong Kong have adopted RMB (6.2095, 0.0005, 0.01%) overseas exchange to achieve full reflux, and their settlement and closing are closed.

Li Xiaojia pointed out that the Shanghai and Hong Kong through the "group tour" pilot first faced the two tier market shares, the next "group tour" destination is Shenzhen Hong Kong Tong, in the future, their investment targets can also extend to stock index futures, primary markets, commodities and fixed income products and a series of asset classes.

In addition, Hongkong has another great value as the "experimental field" for the reform of the RMB exchange rate and interest rate.

Li Xiaojia analysis said that the current China's

Near the closing stage, the exchange rate marketization is also steadily advancing.

The reform of exchange rate and interest rate as the benchmark price benchmark of financial market is facing the complexity of "pulling the whole thing and moving the whole body". We must proceed cautiously. After China's interest rate control is basically relaxed, the bigger challenge lies in the formation of an interest rate signal that can guide market expectations in the financial market.

The interest rate and exchange rate signals formed on the offshore market in Hongkong are formed under fully open market conditions, which can avoid direct pmission of risks to the mainland market and continue to push forward steadily.

Reform provides reference.