Guo Shuqing: No Plan for the Launch of the International Board Recently
BY | FROM CSFJN | 2012-11-15 09:34
On the 11th, the representative of the 18th National Congress of the Communist Party of China, the China Securities Regulatory Commission Chairman Guo Shuqing told the reporters during a collective interview in the News Center of the 18th CPC National Congress that there was no plan for the launch of the international board recently, and the investment quota of QFII and RQFII would be raised in the future. He clarified that he never mentioned about the question "Is it possible to issue IPO without administrative approval", and the future direction of the IPO reform was to grant more decision-making power to investors and the market. Currently, the unified supervision and development in the bond market achieved the solid progress. In addition, the CSRC was studying to lower the threshold for mainland enterprises to be listed in Hong Kong market.
"Although we are not responsible for the rise and fall of the stock market index, different from developed countries, the regulatory institutions need to bear some responsibility but not all, or most of the responsibility as an emerging and transitional market."Guo Shuqing said.
As for the next phase of work, CSRC proposed three objectives in the beginning of this year. The first objective is to safeguard an equal and fair trade order of the stock market and to effectively protect the legitimate rights and interests of investors; The second is to provide a good support to the real economy, in particular, to the weak links of the real economy such as small and medium enterprises, and the three rural issues; The third is to promote the progress of science and technology.
Guo Shuqing said the international board had been studied and discussed for a long time and written into the "12th Five-Year" Plan, but the international board involved a lot of issues, such as trading, legal, accounting, and regulatory issues, which entailed proper arrangements and resolutions.
He said that it was really essential to accelerate the development of the capital market and the Chinese capital market should be a comprehensive market, which could raise the efficiency of capital usage and provide more investment channels for the residents.
Guo Shuqing clarified the issue about whether the administrative approval of IPO would be canceled, and he had never mentioned "Is it possible to issue IPO without administrative approval". The future direction of the IPO reform was to grant more decision-making power to investors and the market with the governmental intervention as few as possible.
Guo Shuqing said that to avoid the enormous ups and downs of the stock market, it was very important to develop institutional investors. In 2012, the CSRC expanded the investment quota of the QFII and RQFII. The investment quota of QFII increased from $30billion to $80 billion and the RQFII quota was enlarged from 20 billion yuan to 70 billion yuan. Recently the three major officials in charge of the financial service in the Hong Kong Special Administrative Region Government visited the CSRC and proposed to further expand the scale of RQFII. In addition, as for the capital flows of the QFII funds, the relevant departments were also studying the way to improving the foreign exchange management.