Yuan products may get to trade in HK
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China may allow trading of yuan-denominated fund products in Hong Kong as it seeks to open its financial market further, Yao Gang, vice chairman of the China Securities Regulatory Commission, said at the Lujiazui Forum on Saturday.
"We have been trying to launch more such pilot programs to accelerate China's financial market opening-up process," Yao said.
As part of pledges it made to join the World Trade Organization, China has been gradually opening its financial markets to foreign investors, allowing them to set up joint equity and fund management firms and implementing a qualified foreign institutional investors program.
These initiatives aim to diversify channels of investment for investors, help in speeding up the process of opening up and serve to better integrate the domestic regulatory system with international standards, he said.
Yao reiterated that an important task for the CSRC this year is to implement the international board on the Shanghai Stock Exchange which would allow qualified overseas companies to sell yuan-backed A shares to improve investment channels in the country's capital markets.
He said the CSRC was coordinating with other departments to resolve several key issues before the board could become a reality.
For example, the CSRC would have to address the absence of laws to cover the international board and would have to amend existing laws or introduce new ones to redress the situation, Yao said. China's accounting standard is also different from that international standards and a unified system is required for the planned board.
