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Dear Executive Vice Mayor Wu Qing and Chairman Qiu Yong,
Distinguished Guests:
I am delighted to attend Shanghai Stock Exchange (SSE) Global Investors Conference again. On behalf of China Securities Regulatory Commission (CSRC), I wish to extend hearty congratulations to this meeting and a warm welcome to all guests from home and abroad and express our sincere gratitude to international investors who have long cared for, supported and participated in the development of China's capital market. The Report to the 20th CPC National Congress noted that to build a modern socialist country in all respects, we must, first and foremost, pursue high-quality development. Development is our Party's top priority in governing and rejuvenating China, pointing the way for the reform and opening-up in the capital market. I would like to take this opportunity to share with you some of my views on foreign investment in China's stock market with reference to the developments of the capital market in recent years.
First, the depth and breadth of China's capital market demonstrates the great opportunity of the Chinese market. At present, China's market size of stocks, bonds and futures comes second in the world, with a total market value of listed companies reaching nearly 80 trillion yuan. With steady growth of financing in A-share market, Shanghai Stock Exchange and Shenzhen Stock Exchange rank the 1st and the 2nd respectively among global stock exchanges in terms of amount of funds raised from IPO in the first three quarters in 2022. The improvement of multi-tiered capital market and the implementation of the piloted program of registration scheme in the STAR Market and ChiNext board greatly enhanced the appeal of the capital market to quality enterprises. The Chinese capital market and major international markets are at different positions within their respective inherent cycle, which enhances the value of the Chinese market for global investors.
Second, the high-quality A-share listed companies as a whole demonstrate the high-quality development of the Chinese economy. As the outstanding representative of the Chinese economy, the A-share listed companies provide abundant investment options and satisfactory returns for domestic and foreign investors. Over 80% among the 4,800-plus listed companies listed in Shanghai and Shenzhen made profits for the first three quarters of this year, with a total operating revenue of 52 trillion yuan, up by 8.51% year on year. The profits of listed companies accounted for 76% of all profits for enterprises above designated size. With over 2,200 listed companies in new strategic industries, technology and business innovation become the highlight attracting international investors. In recent years, with the support of capital market, a number of listed companies strived for innovation in the photovoltaic and electric vehicle sectors, pushing China toward the leading position globally. In addition, more and more listed companies have voluntarily disclosed the ESG report to implement the new development philosophy.
Third, the continuous opening-up of the Chinese capital market will facilitate the investment in A-shares for international investors. The CSRC has earnestly implemented the decisions and arrangements by the CPC Central Committee and the State Council about expanding opening-up in the finance sector. The measures for high-standard institutional opening-up of the capital market have been implemented, the mutual market access mechanism has been optimized, and the basic trading system has been improved. Furthermore, more international products have been introduced, the channels for cross-border investment and financing have been widened, which have attracted more and more overseas institutions to invest and do business in China.
Ladies and gentlemen, dear friends!
Last Friday, in the speech at the opening ceremony of CIIE, General Secretary Xi Jinping called again for expanding opening-up and sharing development opportunities with the rest of the world. Comrade Li Qiang, Member of the Standing Committee of the Political Bureau, also articulated the significance of opening-up for China's reform, development and innovation. CSRC will firmly advance high-standard opening-up in the capital market, providing broad space and opportunities for global investors. We believe this Conference will continue to be the key platform for international investors to understand the Chinese capital market, and become an important channel for domestic regulatory authorities to hear the voice of global investors. We sincerely hope to keep extensive communication with international investors, and cooperate at different levels and in various forms to build an open and inclusive capital market that can promote global growth.
I wish this conference a great success!
Thank you.
