On April 19, at the Boao Forum for Asia 2021 Annual Conference, Fang Xinghai, vice chairman of the mainland’s Securities Regulatory Commission, responded to the topic of whether the massive entry of foreign capital after the opening up would affect the stability of the stock market. A few points in particular attracted attention. Netizens commented: people dare to come in? Others pointed out sharply that it was not foreign capital, but domestic vests.
Collated Fang Xinghai talking points are as follows.
1, foreign accounts if the stock market caused significant fluctuations, we can suspend it trading
Fang Xinghai said, “From the very beginning, when the Shanghai-Hong Kong Stock Exchange and Shenzhen-Hong Kong Stock Exchange were designed, there are provisions that if a foreign account comes in and causes significant fluctuations in the stock market, we can temporarily stop it from trading, so we have a means to prevent foreign capital from entering and leaving our market instability. Of course, on this issue, we attach great importance to security, we continue to communicate with foreign institutional investors, with the foreign regulatory authorities. The SFC has very good communication with the Hong Kong Securities and Exchange Commission. We have a roundtable twice a year, and usually a lot of phone calls, we can communicate with the Hong Kong Securities and Exchange Commission at any time to ensure the stability of the financial markets in both places. So stability, we are also very confident that in the process of opening up to maintain the stability of the capital market. “
2, “such funds we are more concerned about.”
Fang Xinghai said, “we now see the foreign capital coming in clearly, through the “two through” in foreign capital is only three kinds, a foreign retail investors, the proportion is very small, will not affect our financial stability; and one is the foreign hedge funds, insurance companies, engaged in global asset allocation funds, such is We are very welcome, but also the largest proportion of positions; there is also a class of foreign brokerage firms through the form of self-dealing in, in fact, behind some hedge funds, such funds we are more concerned about.”
3, in is 50 billion, out the total can not exceed 42 billion
Fang Xinghai said, “The Securities Regulatory Commission in accordance with the requirements of the central government, this aspect is highly important, we will do a good job of prevention. For example, the Shanghai-Hong Kong Stock Exchange, Shenzhen-Hong Kong Stock Exchange, for example, we first now maintain the daily amount of in and out, in is 50 billion, out the total amount can not exceed 42 billion, then this will play a certain role in prevention.”
Fang Xinghai’s remarks sparked hot comments from netizens.
Some mainland netizens commented: this is too casual! People dare to come in?
There are also netizens sarcastic to: too stable, stable for more than a decade is still halfway up the mountain.
Some netizens pointed out sharply: the big in and big out is the domestic money, right? How much money can foreign capital have?
Other netizens agreed: there is no foreign capital, all are domestic vests.
Another added: the national team and public funds are the big head.
Another asked in return: How much money is coming in? How much is the big out?
A netizen commented: This is the legendary level of management, including the way of thinking and the world’s mainstream contrary to …
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