Shenzhen Hong Kong Tong Is Also A Window For A Share Market To Absorb Foreign Capital.

The opening of Shenzhen Hong Kong Tong is an important step for China's stock market to open to the outside world.

As an investor in the international market, A shares can be invested through Shenzhen Hong Kong channel.

So,

It is also a window for A share market to absorb foreign capital.

Fang Xinghai, vice chairman of the securities and Futures Commission, said at the seventh Caixin summit that the purpose of Shenzhen Hong Kong Tong's opening was not to attract foreign investors to come in. The main purpose is to allow more foreign institutional investors to enter the Chinese market.

More institutional investors entering the Chinese market will help improve the quality of China's securities market.

For example, in terms of information disclosure, the requirements of investors in this regard will be enhanced in the governance structure of listed companies.

Fang Xinghai's speech sounded contradictory, but it did tell the true meaning of the opening of Shenzhen Hong Kong Tong.

The reason why Fang Xinghai's speech is somewhat contradictory is that if the purpose of Shenzhen Hong Kong Tong's opening is not to attract many foreign investors, then where will more foreign institutional investors enter the Chinese market? Actually, more foreign countries.

Those who enter the Chinese market will naturally bring more foreign investors in.

These two elements are actually indispensable.

But this sounds contradictory speech, it seems to say is a kind of truth.

It is an expression of objective evaluation of A share market.

Because the valuation of Shenzhen stock market is far higher than that of Hong Kong stock market at present, it is difficult for Shenzhen stock market to attract investors in Hongkong market at this stage.

The opening of Shenzhen Hong Kong Tong is more capital.

Therefore, it is difficult to attract many foreign investors in a short time.

But how to make more foreign institutional investors enter the Chinese market is a problem that regulators need to face up to.

This is a higher requirement for Shenzhen Hong Kong Tong and a higher requirement for regulators.

To achieve this goal, it is obviously not enough for Shenzhen Hong Kong to satisfy investors' mutual investment.

At least, with the help of the opening of Shenzhen and Hong Kong, we should conscientiously study the experience of Hongkong market in doing better than the A share market, including the relatively mature investment concept of Hongkong investors compared with A share investors.

In this regard, the opening of Shenzhen Hong Kong Tong is actually forcing regulators to improve the attractiveness of the A share market, rather than saying that the Shenzhen Hong Kong Tong has been opened, and foreign institutional investors will automatically run to the Chinese market, and the arrival of these foreign institutions will automatically improve the quality of China's stock market.

This is obviously not the case, but on the contrary.

That is to say, Shenzhen Hong Kong Tong has opened up, requiring China's stock market to improve its quality better, so that China's stock market can attract more foreign capital to attract more foreign institutions to enter the Chinese market.

Therefore, the opening of Shenzhen and Hong Kong is only the first step.

More importantly, as regulators, there are second steps and third steps to learn and introduce successful experiences and practices in the Hongkong market and even foreign markets through the window of Shenzhen and Hong Kong, such as strengthening market supervision, strictly investigating illegal activities and effectively protecting the legitimate rights and interests of investors.

Only in this way can we improve the quality of China's stock market and increase the attractiveness of China's stock market.

Otherwise, simply improving the quality of information disclosure and improving the governance structure of listed companies is just a matter of seeking opportunities.

How can we improve the quality of information disclosure of listed companies if there is no strict market supervision and strict investigation and treatment of illegal activities? In this connection, whether the opening of Shenzhen Hong Kong Tong can achieve the desired purpose is a test for mainland regulators.

Next time, everyone will follow the world's clothing and shoe net to see the detailed information.