The six-month exodus of foreign capital from China’s US$9 trillion stock market appears to have petered out, as some foreign investors voted with their feet in response to securities regulator head Wu Qing’s push to instil market discipline. It remains to be seen whether this conviction is deeply entrenched among domestic and foreign investors.
Since Wu’s appointment as chairman of the China Securities Regulatory Commission (CSRC) in February, benchmarks tracking China’s yuan-traded onshore stocks have risen by over a tenth from their lows. Overseas investors are now taking a more favourable view of the world’s second-largest stock market because the new regulations lower the threshold for and strengthen regulations on delisting, raise the bar for new listings and strengthen oversight of high-frequency trading and the mutual-fund industry.
Source: TRADE FINANCE
