What does the two-way opening of capital market mean?
The two-way opening of the capital market is conducive to the gradual maturity and long-term healthy development of the mainland capital market. It is generally believed that the opening of emerging markets is mainly to accelerate development, improve competitiveness and quickly become mature or developed markets.
In this regard, the successful case is South Korea, and the opening of the capital market has played a very important role in improving its market level, even a decisive role. In the process of two-way opening up, "bringing in" and "going out" are promoted at the same time, which can not only learn from international experience, but also force the standardized development of the domestic market.
The pilot Shanghai-Hong Kong Stock Connect, the upcoming Shenzhen-Hong Kong Stock Connect and mutual recognition of funds between the mainland and Hong Kong will all play such a touching role and promote market reform and innovation.
On the one hand, by introducing foreign institutional investors, mature investment styles and ideas can be brought; On the other hand, it can broaden the investment channels of domestic investors and make the mainland capital market in line with international standards.
The two-way opening of the capital market is conducive to accelerating the internationalization of the RMB and promoting the convertibility of capital projects. In recent years, the channels of cross-border financial transactions of RMB have been gradually expanded, the convertibility of RMB capital account is expected to be realized in the near future, and the foreign exchange management regulations are also being revised.