A person familiar with the matter revealed that China is considering increasing the upper limit of the proportion of foreign investment in holding domestic listed companies to attract the Chinese stock market with global funds with a return scale of US $ 9.4 trillion (approximately S $ 12.88 trillion).
According to Bloomberg News Agency on Friday (September 22), people familiar with the matter are quoted that the Chinese government is considering raising the upper limit of overseas investors' holdings of listed stocks in Shanghai, Shenzhen and Beijing as the upper limit of market opening and promoting transactions as market openness and promotion transactions.Part of the effort.China currently sets up the upper limit of the total foreign -funded shareholding of A -share listed companies to 30%, and limits the shareholding ratio of a single foreign shareholder to less than 10%.
People familiar with the matter said that the current discussion is still in the early stages, which industries may benefit, and the details of the new upper limit in which areas have not been determined.
The report believes that the above -mentioned measures show that the Chinese government's commitment made in July of the Politburo of the Communist Party of China.The Politburo of the Communist Party of China held a meeting on July 24 this year, promising to activate the capital market and boost investor confidence.
After the above news came out, the Chinese stock market rose on Friday. After the CSI 300 index fell for three consecutive days to the lowest level since November, it rebounded 1.8%.Global investors have contacted 7.5 billion yuan (RMB and about S $ 1.4 billion) on shore stocks through transactions with Hong Kong. This is the largest single -day purchase since July 31.
With the confidence of the outside world's confidence in China's economic recovery and the deterioration of Sino -US relations, foreign capital is accelerating the selling A shares.It is reported that foreign capital sold a total of $ 12 billion in A shares last month, writing the highest single -month selling record.As of June this year, Chinese bonds and stocks held by foreign capital have fallen 17%from the peak in December 2021 and a decrease of 1.37 trillion yuan (about S $ 260 billion).
In order to soothe the emotions of investors and boost the activity of the A -share market, the Chinese government announced on August 28 that the implementation of securities transactions' stamp duty is half levy, and the tax rate has fallen to 0.05%. This is the first time in China since 2008Low the stamp duty.
