China Securities Regulatory Commission (CSRC) in Beijing Photo:VCG

China's securities regulator will push forward with new legislation for Chinese firms' overseas listing, and include more foreign companies listed in Hong Kong to be tradable in the Stock Connect trading scheme between the Chinese mainland and Hong Kong, China Securities Regulatory Commission (CSRC) vice chairman Fang Xinghai said at a finance forum on Friday.

According to Fang, CSRC will steadily promote an all-rounded systematic opening-up of capital markets, institutions and products, expand and optimize the global depositary receipt (GDR) business under stock connect scheme and encourage more Chinese companies to issue GDRs. GDRs are certificates issued by custodian banks to represent China's yuan-denominated A-shares.

Fang made the comments at the China International Finance Annual Forum 2022, a seminar under the China International Fair for Trade in Service (CIFTS), which kicked off in Beijing on Wednesday.

Fang said that China will carry out the auditing supervision cooperation agreement reached between China and the US, and foster a stable global supervisory environment for the high-level opening-up of China's capital market.

"We will also strengthen communication with overseas institutional investors, and improve the investment convenience of A-share market, so as to cement foreign investors' confidence toward China's capital market," Fang said, adding that the CSRC also encourages Hong Kong to launch yuan-denominated stock trading counters.

A total of 178 companies have raised 346 billion yuan ($50.1 billion) on the Shanghai and Shenzhen bourses in the first seven months of 2022, topping the world in IPO numbers and fundraising scale, recent data showed. 

China's capital market has stood severe tests including the Ukraine crisis, the Fed's interest rate hikes and domestic epidemic flare-ups, with trading remaining active and markets functioning well, playing an important role in stabilizing the macro economy fundamentals and social expectations, Fang said. 

In the first eight months of the year, a total of 63.2 billion yuan in foreign capital has been channeled into A-share market through the Stock Connect, reflecting the market's resilience and a consensus on the long-term prospects of the Chinese economy. 

At the forum, Ruan Jianhong, a spokesperson for the People's Bank of China, the country's central bank, also said that China has pursued a normal monetary policy without excessive stimulus, which also leaves space for further adjustment and coordination. 

Ruan noted that China's monetary policy shall be adjusted across cycles, and maintain stable and moderate credit growth, as well as abundant and reasonable liquidity to help the development of the economy. At the same time, China will pay close attention to inflation at home and abroad, to avoid flood-like stimulus and excess liquidity, so as to keep domestic prices within a reasonable range. 

Global Times