QFII has been approved by nearly 4 times the number of Chinese assets to attract global attraction and daily increase.

Since the 18th National Congress of the Communist Party of China, China's capital market has gone through a key ten years. In the past ten years, my country's capital market has continued to develop in reform and opening up, showing the characteristics of accelerated openness, increased openness, and expanding open scope.

In the past ten years, the high -level system is open and steadily advanced, and the use of foreign investment has achieved important results. The international attraction and competitiveness of my country's capital market have been significantly enhanced. Specifically, qualified overseas institutional investors (QFII) developed rapidly, and A shares have been increasing in the proportion of internationally renowned indexes, and foreign -funded stocks have been fully liberalized. A shares, the bond market has also become an important destination for global cross -border bond investment. Various signs show that with the stage of high -quality development in my country's economy, the trend of continuous inflowing into the Chinese capital market has been continuously strengthened.

Foreign capital allocation of Chinese assets continuously increases

In the past ten years, my country has steadily expanded financial opening up. Foreign capital has favored Chinese assets. It not only accelerates the deployment of the securities industry, but also has continued to increase its allocation of banking and insurance.

In the past ten years, China has basically established the management system for national treatment and negative list before access, completely canceling the restrictions on foreign -funded stocks in the fields of banks, securities, funds, futures, and personal insurance. Shanghai -London and Bondon, improve the qualified institutional investor system ... A series of major measures have been implemented, fulfilling the promise of expanding financial opening up.

The securities industry is firm to the outside world. In October 2012, the second revised "Foreign Enterprise Establishment Securities Company Establishment Rules" for the first time relaxed the restrictions on the proportion of foreign -invested shares for the first time. In April 2018, the "Administrative Measures for Foreign Investment and Securities Company" for the first time allowed foreign investment to hold up to 51%. In July 2019, the "Relevant Measures on Further expanding the opening of the financial industry to the outside world" launched 11 financial industry opening measures. From April 1, 2020, the CSRC officially canceled the restrictions on foreign -funded stocks in securities companies, which means that overseas institutions can establish wholly -owned securities companies in China. As of the end of 2021, nine foreign -funded securities firms have successfully exhibited the industry in China.

The banking and insurance industries have launched more than 50 open policies, and international financial institutions have more active and in -depth participation in the development of the Chinese financial market. In 2021, the capital and assets in China Foreign Bank increased by more than 50%from ten years ago, and the capital of China Foreign Insurance Company increased by 1.3 times in ten years, and assets increased by 6 times.

Since the opening of bonds in July 2017, overseas investors have invested in Chinese bonds multi -channel. After years of development, my country's bond market has gradually become an important destination for global cross -border bond investment. Statistics show that at the end of 2021, China's absorbing cross -border bond investment scale was close to $ 820 billion, accounting for about one -third of the proportion of foreign bond investment in emerging economies.

The relevant person in charge of the State Administration of Foreign Exchange said recently that the total scale of my country's bond market is US $ 21 trillion, and foreign capital accounts for about 3%of the Chinese bond market. In the long run, foreign capital will still steadily increase holding RMB bonds.

Multiple factors attract foreign capital to continue flowing in

In the past ten years, China's assets have been attractive to foreign investment, and foreign capital has continued to flow into the A -share market. People in the industry generally believe that this is mainly due to the common promotion of multiple factors such as macroeconomic fundamentals, policies, and fundamentals of listed companies.

China's economic strength jumped to a new level. On June 28, Zhao Chenxin, deputy director of the National Development and Reform Commission, introduced at the "China Ten Years" series of theme press conferences that in the past decade, the Chinese economy has continued to innovate and improve macro -control in the process of turning to high -quality development. Economic development is both both Maintaining a reasonable growth in quantity has also achieved steady improvement. The total economic volume rose from 53.9 trillion yuan in 2012 to 11.44 trillion yuan in 2021, accounting for more than 18%of the world economy from 11.3%to more than 18%, and the per capita GDP rose from 6,300 US dollars to more than 12,000 US dollars.

"The fundamentals of China's economy are the foundation of my country's capital market to attract foreign capital. It is precisely because of the outstanding performance of China's macroeconomic and strong development trend that foreign capital has continued to be enthusiastic about my country's capital market. The strong color attracted foreign capital, and the entry of foreign capital further promoted China's economic development, complementary and strengthened each other. " Show.

"China's economy has strong toughness, and is still in the stage of stable growth. For example, in 2021, my country's economic growth is as high as 8.1%, which is higher than the world average, and it is also significantly higher than the level of developed countries." Chen Mengjie told a reporter from the Securities Daily that the current domestic economy is in a period of transition. Under the guidance of the top -level industrial policy, industrial upgrading has strong sustainability and certainty. In addition, with the huge domestic consumer market and relatively complete industrial supporting infrastructure, it is expected to continue to emerge in a number of high -growth enterprises in the future, and the attractiveness of foreign capital will continue to increase.

The RMB exchange rate has remained basically stable at a reasonable and balanced level. The continuous improvement of RMB internationalization also helps enhance the attractiveness of RMB assets to global funds. "In terms of foreign capital, maintaining basic stability of exchange rates can reduce the risk of potential exchange rates on the one hand, and help reduce costs on the other hand. In recent years, the level of internationalization of the RMB has further increased, risk aversion attributes have increased, increasing confidence in foreign investment in RMB assets. Chen Li, chief economist of Chuancai Securities and director of the Institute, told a reporter from the Securities Daily. The Chinese capital market is more and more open to the outside world. In the past ten years, China's capital market has continuously carried out institutional reforms. The market environment of long -term funds "willing to come and retain" has gradually formed, and foreign capital entry has become more efficient. The implementation report of China Monetary Policy in the second quarter of 2022 issued by the central bank on August 10 proposed that the central bank will continue to promote China's financial reform and opening up and further simplify the procedures for overseas investors to enter the Chinese market investment. , To enrich the types of assets that are available, create a more convenient environment for overseas investors and international institutions to invest in the Chinese market.

The profitability of A -share listed companies has continued to improve. In the past ten years, in the process of sustainable economic growth in China, as the backbone of China's economic development, the profitability of listed companies has continued to increase its profitability. Oriental Fortune Choice data shows that as of the end of July this year, there were 4,844 A -share listed companies, of which 3508 listed companies' 2021 performance was comparable to 2012. In 2012, the 3508 companies achieved a total of 2.17 trillion yuan in net profit attributable to mothers. In 2021, a total of 4.49 trillion yuan in net profit attributable to mothers was more than ten years ago.

QFII has increased by more than 4 times in the number of A shares in ten years

A group of data has become a vivid portrayal of the opening of China's capital market in the past ten years and has achieved significant results and forming a good pattern.

Qualified overseas institutional investors (QFII) have developed rapidly. As of the end of July 2022, more than 700 institutions have been approved by QFII, an increase of nearly 4 times from 2012; the number and market value of QFII have increased by more than 4 times and more than doubled, respectively.

The management system of qualified overseas institutional investors has continued to optimize. In July 2012, the Securities Regulatory Commission issued the "Regulations on the Implementation of the" Administrative Measures on the Investment Investment Investment Management of Qualified Overseas Institutional Institution ", revised the scope of QFII investment, and restricted its shareholding ratio from 20%to 30%. In September 2016, the Securities Regulatory Commission canceled QFII and RQFII stock investment ratio restrictions, canceled the requirements of not less than 50%of the shares, and allowed QFII to flexibly allocate assets such as stock bonds. In September 2019, the State Administration of Foreign Exchange decided to cancel the investment quota restrictions on qualified foreign institutional investors (QFII) and RMB qualified foreign institutional investors (RQFII). In September 2020, the CSRC, the Central Bank, and the State Administration of Foreign Exchange issued the "Administrative Measures for the Investment Investment Investment Investment Investment Investment Investment Investment Investment Management Measures for Qualified Overseas Institutional Institution and Qualified Overseas Institutional Institutional Investors". QFII and RQFII investment entry thresholds have been steadily and orderly expanded the scope of investment in foreign capital.

The reporter observed that began in the fourth quarter of 2020, the number of QFII institutions increased significantly. According to data from the China Securities Regulatory Commission, 48 institutions were approved by 48 institutions in the fourth quarter of 2020, which was nearly twice the total number of QFII approved in the first three quarters of 2020, accounting for 68% of the total number of QFII approved in 2020 ; From January to September 2021, the number of QFII approved for reaching 95, which has exceeded 2020. As of the end of 2021, the number of QFII approved for the whole year reached 119, a record high.

QFII's scale of A shares has increased significantly. Oriental Fortune Choice data shows that at the end of 2012, QFII held 174 A shares with a total market value of 81.410 billion yuan: At the end of 2021, QFII held 954 A shares, with a total market value of 284.08 billion yuan, compared with 2012, from 2012, compared with 2012, from 2012, compared with 2012, from 2012, compared with 2012 At the end of the year, the number of shares and the market value of the shareholding increased by 448.28%and 248.86%, respectively.

QFII investment structure has also changed quietly. From the perspective of the QFII shareholding industry, at the end of 2012, the five industries such as banks, household appliances, food and beverages, building decorations, and real estate were on duty before, with 50.501 billion yuan, 7.062 billion yuan, 5.388 billion yuan, and 2.739 billion yuan. , 21.20 billion yuan; at the end of the first quarter of 2022, the five industries such as banks, electrical equipment, electronics, pharmaceuticals, and building materials were on duty before, with 67.417 billion yuan, 48.894 billion yuan, 18.227 billion yuan, 17.08 billion yuan, and 17.08 billion yuan. 12.373 billion yuan, averaged more than 10 billion yuan. It can be seen that while foreign investment adheres to bank stocks as the layout of the bottom warehouse, it has quietly shifted from traditional industries such as household appliances, food and beverages to growth stocks such as medicine and technology.

People in the industry generally believe that the changes in institutional investment preferences have reflected the new trend of Chinese industrial iteration upgrades in the past decade.

Interconnection and Sharing China Market Opportunities

As an important investment channel under an interconnection mechanism, Shanghai -Hong Kong Stock Connect and Shenzhen -Hong Kong Stock Connect played a huge role in strengthening the flow of domestic and overseas capital, and also provided foreign investors to participate in the Chinese capital market. Asset allocation channel. On November 17, 2014, Shanghai -Hong Kong Stock Connect was officially opened to traffic as the first "bridge" under the interconnection mechanism of the Mainland and Hong Kong. On December 5, 2016, Shenzhen -Hong Kong Stock Connect was officially opened, which achieved the interconnection of the Hong Kong Stock Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange. On July 4, 2022, ETF was officially opened in the interconnection mechanism of the Mainland and Hong Kong stock market transactions. The Chinese capital market took another solid step in the direction of legalization, marketization and internationalization.

Since the opening of the Shanghai -Shenzhen Stock Connect, the northbound capital has continued to buy A shares. As of the end of July 2022, the Shanghai -Shenzhen Stock Connect brought 1.69 trillion yuan in net inflow to the A -share market. Generally speaking, northbound funds have been in a net inflow trend in the past eight years. As of the end of July this year, the net inflow of the northbound capital inflow was 50.730 billion yuan.

In terms of Shanghai Stock Connect, as of the end of July 2022, a total of 267 stocks appeared in the top ten active stock lists in the Shanghai Stock Connect. Buy 334.460 billion yuan.

In terms of industry, the above 267 active shares involved 31 in the case of Shenyan industries, and the net inflow of northern -directional funds during 23 industries. Among them, banks, non -silver finance, electricity equipment, food and beverages, etc. Averaged 20 billion yuan. During these four industries, the northbound funds totaled a total of 196.807 billion yuan.

In terms of the Shenzhen Stock Connect, as of the end of July 2022, a total of the top ten active stocks of the Shenzhen Stock Connect appeared in the top ten stocks in 20122. Net bought 396.880 billion yuan.

In terms of industry, the above 201 active shares involved 30 in the case of Shenyan industries, and there were 23 industries to achieve a net inflow of northern direction during the period. Among them, household appliances, power equipment, electronics, non -silver finance, banks, etc. The buying was over 20 billion yuan. During the five industries, the northbound funds totaled a total of 265.446 billion yuan.

The advancement of the interconnection mechanism and A shares have been incorporated into MSCI, FTSE Russell Global Index, and the S & P Dow Jones Index. It has played an important role in the opening of China's capital market and the internationalization of RMB.

On June 1, 2018, A shares were officially incorporated into the related index of Morgan Stanley Capital (MSCI). The market refers to this historical event "A -shares into Mo". This is an important step in the internationalization of the A -share market.

On June 21, 2019, A shares were included in the FTSE Russell Global Index; in the early morning of September 8, 2019, the S & P Dow Jones Index was officially announced. At this point, the three major international index companies MSCI, FTSE Russell, and S & P Dow Jones are all included in A shares. This is another important milestone incident in the opening of China's capital market to the outside world. This also fully reflects the international investment community's support and trust in China's long -term good economic and capital market reform and opening up.

The tide is wide on both sides of the strait, and the wind is hanging. The growth of China's capital market will also grow further in expanding opening up. In the new journey of high -quality development of China's economy and high -level institutional types of capital markets, the global attraction of Chinese assets is bound to become stronger and stronger, and the tide of foreign capital to increase Chinese assets will inevitably become surging. (Reporter Zhang Ying Ren Shi Bi Chu Lijun)

[Editor in charge: Li Tong]

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