China Securities Regulatory Commission official Shen Bing: A-share valuation is at a relatively historical low, providing foreign investors with a better choice for long-term allocation.

At the International Investors Conference of the Shanghai Stock Exchange on November 7, 2024, Shen Bing, Director of the China Securities Regulatory Commission, stated that the proportion of companies representing the direction of new productive forces among A-shares, H-shares, and Chinese companies listed overseas has continued to increase. From a valuation perspective, compared to emerging economies, they are still relatively low historically. This provides foreign investors with better options for long-term allocation. Shen Bing, Director of the China Securities Regulatory Commission: Drafting revisions to short-term trading rules and algorithmic trading rules Shen Bing stated that recently, in collaboration with the Ministry of Commerce, we have clarified operational guidelines for tax incentives for sovereign funds investing through the QFII channel, and we are currently drafting revisions to short-term trading rules and algorithmic trading rules to eliminate uncertainties faced by foreign investors in the market in a legal manner. Shen Bing, Director of the China Securities Regulatory Commission: China's capital market is a market that cannot be ignored and is the most important globally Shen Bing stated that China's capital market is a market that cannot be ignored and is the most important globally for three reasons: first, there is a long-term optimism regarding the stable development of the economy. Under the guidance of the spirit of the Third Plenary Session of the Twentieth Central Committee, the Chinese economy continues to recover and improve on a solid basis. The fundamentals are also showing marginal improvements, attracting investors' attention and focus on China's economy. Second, there is a long-term optimism about the development prospects of the Chinese capital market. The status and influence of China's capital market are gradually increasing in terms of size, depth, and liquidity. From a valuation perspective, compared to comparable economies or emerging economies, it is still relatively low historically, providing foreign investors with better options and opportunities for long-term allocation. Third, there is a long-term optimism about the investment environment in China. The China Securities Regulatory Commission is steadfastly promoting the two-way opening of market institutional products, continuously optimizing a stable, transparent, and predictable investment environment, which will enhance the attractiveness of the domestic market. Shen Bing, Director of the China Securities Regulatory Commission: Will provide further support for foreign investment in the exhibition industry Shen Bing stated that on the basis of existing policies and regulations, further support will be provided for foreign investment in the exhibition industry. It is necessary to comprehensively consider the overall strength of foreign institutional groups. Currently, for high-quality overseas banks applying for fund custody qualifications in China, we have allowed some indicators of the overseas parent bank to be combined for calculation. The next step will also consider researching the adoption of similar mechanisms in the application for individual pension investment business. In terms of optimizing cross-border data flow, we are also actively researching a similar positive list in the securities industry. Shen Bing, Director of the China Securities Regulatory Commission: Researching the merger of indicators for personal pension investment business for overseas banks Shen Bing stated that currently, for high-quality overseas banks applying for fund custody qualifications in China, it has been allowed to combine the indicators of overseas banks. The next step will consider researching similar mechanisms in the application for individual pension investment business. Shen Bing, Director of the China Securities Regulatory Commission: Promoting institutional opening in three aspects to create a market where companies are more standardized and investments are more secure Shen Bing stated that promoting institutional opening will be done in three aspects: firstly, continuing to emphasize that reform and opening up are our fundamental national policy, constructing a new system for a higher level of open economy and actively engaging with high standards of economic and trade rules. Secondly, maintaining a market-oriented, rule of law, and internationalized business environment has become a joint responsibility of government departments. Thirdly, continuously improving the ecology of the capital market, promoting the high-quality development of the market, and enhancing the investment value of the market to create a more standardized market for companies and a more secure investment market.