On the afternoon of September 24th, managing director of the HongKong Stock Exchange, co-leader of the Mainland Affairs Bureau and the member ofmanagement committee Mao Zhirong visited SUSTC and gave a talk about“HuGangTong under open Chinese capital market”. Raising vivid examples, Mr. Maoclarified the mechanism of HuGangTong and its characteristics, Professor He Jiapresided over the forum.
At the beginning, Mr. Mao showed rapid development of Chinese stockmarket in the past 20 years with specific data, the Shanghai and Shenzhen stockmarket capitalization size has reached more than 36 trillion billion yuan atpresent from 354 billion in 1993. By the end of 2014, Shanghai and Shenzhenmarkets were ranked No. 5 and 9 over the world. But on the opening issues,although the government has launched “QDII”, “QFII”,”RQFII”, owing to difficult license applications, inconvenience ofcapital inflow and outflow and many other issues, the internationalization ofChinese capital market still has a long way to go.
When it comes to the structural characteristics of Chinese capitalmarket, Mr. Mao started with the distribution of securities accounts, showingthe absurdity of Chinese capital market: retail investors accounts for 80% ofthe total, while they are madly following suit. Then he revealed that accordingto the significant difference between onshore and offshore Renminbi interestrates, there’s still a big split between domestic and overseas markets.Compared with developed capital markets abroad, the ratio of China’s stockmarket capitalization against total assets of the banking sector is very low,which reflects the proportion of direct financing of enterprises is stillrelatively low. But with the constant adjustment of asset allocation, themarket will have a huge liquidity and demand for product.
At last, one year after the implementation of HuGangTong, Mr. Maoexplained several issues of concern: Can HuGangTong be applied to other assetclasses? Will it be possible for HuGangTong to extend throughout other overseasmarkets? What are the main path of international cooperation? Then it followed with Q&A section, Mr.Mao’s peerless answers earned a long-lasting applause.
（Submitted by: Su Ye）
