Guo Shuqing elaborates on opening up of China’s capital market

          The IOSCO opens its Annual Conference public sessions today in Beijing. [People's Daily Online Photo/Li Zhenyu]


          For the past 30 years, China's capital market has taken a special route of opening up, China’s top securities regulator said.
          Guo Shuqing, Chairman of the China Securities Regulatory Commission (CSRC), talked about China's capital market's route of opening up at the on-going International Organization of Securities Commissions (IOSCO) Annual Conference Wednesday in Beijing. 
He summed its main characteristics up as follows: 
- Introducing foreign direct investment (FDI) has always been given the top priority;
- Foreign investment has effectively helped support state enterprises restructuring
- Hong Kong and other regions have become the bridge and shield of inward and outward capital flows;
- With a gradual approach, the capital market has become highly open.
The special road has generally fitted in with the development trend of global economy and has had positive effects on China's Reform and Opening up as well as its modernization process, said Guo.
As for the advantages of China's opening up of the capital market, Guo summarized four points:
- Greenfield Investment has been highly emphasized;
- Financial sector has been urged to serve the real economy;
- The "firewall" mechanism has been effectively established;
- The opening up has been taken step by step, starting from those economic sectors that concerns foreign affairs.
                However, as Guo pointed out, the disadvantages are also out there, that is, the imbalances in the capital and financial market system, and the operating efficiency of market and validity of financial supervision have yet to be improved.
               The IOSCO, the umbrella body for the world's securities regulators, opened its Annual Conference public sessions today in Beijing, with one of its themes focusing on capital markets development in emerging markets.
               China is emerging as the most attractive investment destination for the world's investors, followed by India and the US, according to Capital Confidence Barometer issued by Ernst & Young Tuesday, covering over 1,500 senior executives in 57 countries and regions.