China to Expand Stock Connect in Further Market Opening

The vice chairman of the CSRC discussed plans to increase foreign investment in Chinese markets. He emphasized the need for more options for foreign investors, including easier access to stock connect and commodities futures. The speech highlighted the benefits of foreign investment, such as market rationalization and better valuations. Currently, foreign investors hold less than 5% of Chinese stocks, compared to higher percentages in Japan and South Korea. The CSRC plans to take concrete steps to encourage more foreign investment, coinciding with regulatory changes that allow Wall Street firms to expand in China.

What is one of the proposed changes to attract more foreign investors to the Chinese markets?

• Restricting foreign access to Chinese markets

• Providing more options for using the stock connect

• Reducing the number of available stocks

• Increasing taxes on foreign investments

What does the vice chairman want to make easier for foreign investors?

• Trading commodities futures

• Starting new businesses

• Buying real estate

• Opening bank accounts

What has been a result of opening up Chinese markets to foreign investors?

• Decreased stock prices

• Greater rationalization and valuations

• Higher inflation rates

• Increased market volatility

What percentage of Chinese stocks do foreign investors currently hold?

• 30%

• 20%

• 10%

• Less than 5%

What recent changes have allowed Wall Street firms to expand in China?

• Currency devaluation

• New trade agreements

• Changes to regulations

• Increased tariffs