investors: After more than 20 years of development, individual investors still represent the majority of participants in the A-share market - a situation mainly due to the insufficient diversity of institutional investors, according to Global Times China. The newly launched stock connect that bridges the mainland capital market with Hong Kongs, is expected to attract more institutional investors to further refine investment structure in the A-share market. More important is the introduction of overseas institutional investors into the mainland stock market which can help elevate overall quality, including establishing a higher requirement in the disclosure of market information and in governance structure of listed companies. Facing rising homogeneous competition among domestic securities companies, the Shenzhen-Hong Kong Stock Connect has opened doors to new business which will allow the domestic securities industry to provide services to international investors, exchange communication and enhance integration in relevant ideologies and systems and make the Chinese capital markets systems and regulations more market-oriented and stock market is never short of liquidity. The most significant strategic importance of the Shenzhen-Hong Kong Stock Connect by no means lies in promoting capital inflows into the A-share market that is already associated with big fluctuations, but in the yuan internationalization, especially as the Chinese currency faces challenges in its exchange rate and interest rate. Enormous accumulations of private capital have made each round of the Chinese-style bull market much more relentless than overseas markets.
(news.financializer.com). As
reported in the news.
Tagged under investors, governance structure topics.