China will consider creating more channels for overseas investors to participate in the Chinese mainland’s capital market, China Securities Regulatory Commission (CSRC) Vice Chairman Fang Xinghai said at a financial summit in Shanghai on Saturday, reported Caixin.
Currently, overseas investors have several ways to invest in the mainland market, including stock connect programs linking Hong Kong and the mainland, as well as the Qualified Foreign Institutional Investor program and its sibling, the Renminbi Qualified Foreign Institutional Investor program, said Caixin.
Allowing more mature overseas institutional investors access to the mainland’s capital market is an efficient way for it to grow in a fast and stable manner, he said.
Fang also said that China will improve the mechanism for overseas companies to issue Chinese depositary receipts (CDRs) and file for secondary listings on the mainland, in a bid to introduce more quality listed firms.CDRs are a new type of equity security created in 2018 to allow red-chip companies — overseas-incorporated companies whose main business operations are on the mainland — to list in Shanghai or Shenzhen.
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