Chairman Wu Qing and Vice Chairman Li Ming of the China Securities Regulatory Commission have recently spoken out!

On November 18, during his speech at the HKEX Stock Connect 10th Anniversary Summit Forum, Wu Qing, Chairman of the China Securities Regulatory Commission, pointed out that the Commission is accelerating the promotion of a new round of comprehensive deepening of capital market reform and opening up. In terms of market opening and facilitating cross-border investment and financing, more practical measures will be introduced. Wu Qing stated that the China Securities Regulatory Commission will always adhere to a market-oriented, rule of law-based, and international direction to create a better environment for international investors to invest in the Chinese market. The Commission will work closely with the regulatory authorities in Hong Kong to jointly promote mutually beneficial and coordinated development of the two capital markets. Li Ming, Vice Chairman of the China Securities Regulatory Commission, stated that the Commission will gather consensus extensively, including with parties from Hong Kong, to form a policy force and accelerate the promotion of a new round of comprehensive deepening of capital market reform and opening up. The Commission will adhere to the direction of marketization, rule of law, and internationalization, and strive to create a favorable situation of "willing to come, stay, and develop well." Li Ming pointed out that with the continuous optimization of various mechanisms, the importance of the Shanghai-Hong Kong Stock Connect to the two markets is increasingly prominent. Firstly, trading has steadily increased, effectively improving the liquidity of the two markets and enhancing market vitality. Secondly, the attractiveness of the two markets has significantly increased. The Shanghai-Hong Kong Stock Connect has facilitated A-shares' inclusion in international well-known indexes such as MSCI, FTSE Russell, S&P, Dow Jones, attracting overseas long-term funds to allocate assets to A-share assets. The Stock Connect has also increased the attractiveness of the Hong Kong market for listings, including high-quality Chinese concept stocks and foreign companies, promoting the aggregation of capital, institutions, talent, and information resources to Hong Kong. Li Ming continued to point out that the China Securities Regulatory Commission is promoting comprehensive institutional opening of the market, institutions, and products. In terms of market opening, further optimizing and improving the Stock Connect mechanism, expanding the scope of the Shanghai-Hong Kong Stock Connect, expanding the channels for mainland enterprises to list overseas, and opening up the futures market. In terms of institutional opening, supporting more foreign institutions to invest in China, and supporting more qualified mainland institutions to go abroad to carry out cross-border business. In terms of product development, supporting the launch of more cross-border ETF products, expanding the depositary receipt Stock Connects, and optimizing the mutual recognition arrangements for mainland and Hong Kong funds. Furthermore, the China Securities Regulatory Commission will fully leverage Hong Kong's important role in financial openness to the outside world. The Commission firmly implements the "one country, two systems" principle to promote pragmatic cooperation between the two markets and promote mutual benefits and coordinated development of the two capital markets. In April of this year, the Commission issued five cooperation measures for the capital markets in relation to Hong Kong, and the relevant measures are currently being implemented smoothly. Regarding the relaxation of the scope of stock ETFs and eligibility products under the Shanghai-Hong Kong Stock Connect, the first batch of 91 new ETF targets was officially included in the Stock Connect in July of this year. Concerning support for leading mainland industry companies to list in Hong Kong, large enterprises such as S.F. Holding, CR BEVERAGE, and Midea Group Co., Ltd have completed the filing for listing in Hong Kong. As for optimizing the mutual recognition arrangements for funds, the revision of the relevant rules for optimizing the mutual recognition arrangements has been completed through public consultation. Meanwhile, steady progress is being made in including RMB stock trading counters in the Hong Kong Stock Connect and including REITs in the Shanghai-Hong Kong Stock Connect. Li Ming emphasized that the China Securities Regulatory Commission will continue to optimize and improve the Stock Connect mechanism, further enhance the supervision and coordination mechanisms for overseas listings, jointly support technological innovation and development of new productivity, deepen institutional product cooperation, strengthen regulatory cooperation between the two regions, and jointly safeguard the healthy and stable development of the two capital markets, using the implementation of cooperation measures for Hong Kong as a focal point.