Wang Zhonghe, Chairman Of China Investment Banking In Nomura Securities: China'S Financial Opening Is At A Substantive Breakthrough Stage.

Wang Zhong He

In December 5th, it was hosted by the headquarters of the central broadcasting and television station, Guangdong, Hongkong and Macau, and the southern financial and all media group. In twenty-first Century, the innovative and open Chinese capital market, hosted by the economic report, was held in Guangzhou in twenty-first Century.

In the afternoon on the theme forum of "new opportunities for opening up the capital market", Wang Zhong Ho, chairman of China Investment Bank of Nomura Securities, said that China's financial opening is at a substantive stage of breakthroughs. This is reflected in three aspects, the first is the rapid introduction of guiding opinions; the second aspect is the more progress in capital exchange; and the third aspect is that the principles of access to financial institutions have made more substantial changes.

"China's financial openness has been at a substantive stage of breakthroughs, although this stage is just beginning." Wang Zhonghe stressed at the forum that China's capital market has achieved substantive achievements such as Shanghai, Hong Kong, Shenzhen and Hong Kong, and A share in the MSCI index in the opening up to the outside world, but at this stage, the overall share of foreign capital in A shares is still relatively low, at the initial stage.

"The proportion of foreign capital in the US financial market is 62%, which has exceeded the proportion of local funds. About 30% of the Japanese financial market is foreign capital, while the proportion of foreign capital in China's financial market is only 9%. In contrast, there is still much room for China's domestic market, which has great attraction for overseas investors. Wang Zhonghe thinks.

Wang Zhonghe pointed out that the entry of foreign capital will bring two advantages to China's financial market. On the one hand, according to the experience of other Asian markets, introducing foreign securities firms and overseas investors will help increase market capitalization, expand the market, and change the structure and style of investors. Enterprises will have more opportunities to get more capital through emerging and developing capital markets, which will include many overseas funds. On the other hand, overseas institutional investors have accumulated hundreds of years' experience in value investing and index investment, and they will bring these skills and ideas into China's domestic market, making Chinese investors mature, including knowledge of personal investment and financial management and recognition of returns.

In response to the "wolf coming" voice in the domestic capital market, Wang Zhonghe said that there should be no fear of foreign investment. Although foreign capital has strong overseas capital and rich experience in capital market operation, many times it is not acclimatized.

"As a foreign capital, it enters China's domestic market in the form of subsidiaries. First, the reasons for the size and nature of capital will limit its development and product innovation. Moreover, many overseas experience is hard to land in China. Therefore, the domestic capital market should not be overly afraid of foreign capital entry. Wang Zhonghe analysis shows.