Yi Huiman, Chairman of China Securities Regulatory Commission (CSRC), speaks at the opening ceremony for the SSE STAR market during the 11th Lujiazui Forum 2019 in Shanghai on June 13. Photo: IC

Conditions and atmosphere need to be created, adding to efforts to eliminate interference, for the phase one trade deal between China and the US to be jointly implemented, Chinese Vice Premier Liu He said in a written address sent on Thursday to an influential annual financial forum where financial deregulation and economic recovery from the COVID-19 pandemic were in focus.

China will move unswervingly to deepen reforms and expand opening-up, ramp up the rollout and implementation of financial reform and opening-up measures, and protect the legitimate rights of foreign firms in China, read Liu's written address to the Lujiazui Forum in Shanghai. 

He noted that the central government will hold onto the "one country, two systems" principle to support Hong Kong's role as an international financial center, effectively protect the rights and interests of companies and investors in Hong Kong, and maintain the city's long-term prosperity and stability.

The vice premier's remarks also shone attention on the nation's regulatory toughening of its capital market. 

Adherence to a market-oriented and rule-of-law principle and the improvement of information disclosure, share insurance and delisting, among other basic systems, were mentioned in Liu's address. He also vowed to substantially toughen the crackdown on unlawful and illegal activities such as financial fraud.

Calling for efforts to strike an effective balance between maintaining growth and preventing risks, the vice premier said, "We are fully confident in our capability of handling all internal and external risks and shocks, and achieving stable operations of the financial system."

Speaking at the forum, Yi Huiman, head of China's securities regulator, said that China's capital market opening-up hasn't been slowed by the COVID-19 outbreak, but has instead been accelerated. 

Foreign holding limits in securities, funds and futures in situations were fully liberalized ahead of schedule and six foreign-controlled securities firms have successfully materialized, Yi said, 

The chairman of China Securities Regulatory Commission (CSRC) said the commission will continue to strengthen wide-ranging cooperation with overseas financial regulatory institutions and international financial organizations and work to jointly establish a law enforcement alliance intended to clamp down on violations of laws and regulations.

China's financial sector and capital markets have maintained stable operations at large, according to Yi, pledging to continue improving the Shanghai-London Stock Connect, push for Shanghai to be built as an international financial hub, and support and solidify Hong Kong's role as a global financial hub.

Investors from across the world are welcomed to invest in the Chinese market, said the CSRC chief.

China's bond and stock markets are now both ranked No.2 globally in terms of capitalization, China Banking and Insurance Regulatory Commission Chairman Guo Shuqing said at the forum. 

Overseas institutions' yuan-denominated asset allocation has exceeded 6 trillion yuan ($847.66 billion), revealed central bank Deputy Governor Pan Gongsheng.

The revival of the coronavirus-hit economy was also a central point of discussion. 

All economic indicators have seen marginal improvement as the situation gradually changes for the better, according to Liu.

China's new yuan loans are estimated to total nearly 20 trillion yuan for the whole year, while total social financing is likely to top 30 trillion yuan, central bank Governor Yi Gang disclosed at the forum, where he noted the economy has shown signs of a favorable recovery since the second quarter. 

Reserve requirement cuts and re-lending are both part of the central bank's expansionary monetary policy, said Yi Gang. He also stated that Shanghai could be a forerunner in piloting a freely convertible yuan.

Still, as Guo put it, China won't resort to flood-irrigation stimulus, the monetization of fiscal deficits and negative interest rates. 

Global Times