Capital market opening should not be based on the exchange of political interests

Recently the Fourth Sino-US strategic economic dialogue (SED), Chinese Vice Premier Wang Qishan, U.S. Treasury Secretary Paulson of their respective teams on both sides of the Sino-US economic and trade issues of concern were discussed and signed a Related agreements. Unlike in the past is that the Americans seem to have attached great importance to the previous financial market opening up, the less attention. U.S. Treasury Secretary Paulson said before the talks, the dialogue will focus on financial and macro-economic cycle of change, trade and open markets and increase investment and expand cooperation in energy and environmental cooperation.
Coincidentally, Chinese Vice Premier Wang Qishan, recently also an unprecedented for the British "Financial Times" Written on the theme: Strengthening Sino-US cooperation in energy conservation and environmental protection. Is successive Americans are most concerned about opening up the financial markets, the appreciation of the renminbi issue, no one has been a concern? »
In fact, the two sides on the Sino-US strategic economic dialogue that the open position, so that Sino-US negotiations can not be bypassed the financial markets open this "heart guitar." In fact, China and the United States will be issued after the joint note also mentioned that this strategic economic dialogue between the two countries and financial cooperation and financial liberalization has made many substantial progress and achievements. China agreed to allow eligible overseas in the A-share listed companies, QFII lock period reduced to three months. But during the meeting, the Commission approved a sudden Credit Suisse (CreditSuisse) in China to set up a joint venture securities companies. Highly concerned about the market after the market opening measures have been suspended for two years, this is the SFC promulgated in December last year, foreign investment in the securities industry on the new requirements, the first successful company. The SFC spokesman said that in a period of time, will continue to "gradual and orderly progress, security, control, competition cooperation, mutual benefit and win-win" the basic principle to a positive and pragmatic attitude, an appropriate time to expand the securities industry and capital market opening to the outside world.
This time the choice of opening up the financial issues official statement, this open, with a strong political flavor, the United States means that certain political interests of the exchange. However, based on the political interests of the exchange of financial openness, we need you »
Sino-US strategic economic dialogue started, there were six foreign stock exchanges to establish representative offices in China; QFII total investment of up to 30 billion U.S. dollars, "foreign equity securities companies to set up rules" amendment to restore approval of the establishment of joint venture securities companies; " Securities companies to establish subsidiaries trial provisions "release, the joint venture allow qualified securities companies to expand business scope in line with the conditions to allow foreign companies to issue renminbi-denominated shares. These capital market liberalization measures, not in a great international political pressure, "squeezing toothpaste" like a development. The question is, this forced the market opening, has never been to maximize choice.
Let the market Xiangbu Tong is the point: why domestic assets times of high prices is not open, domestic asset prices and relatively inexpensive, open up the market's voice decibels sudden increase » If asset prices in times of high finance had a greater number of the country, not only our financial assets can卖个好价钱, more importantly, we can by virtue of this golden opportunity in exchange for huge amount of foreign investment, and foreigners used the money To improve our financial market infrastructure, with foreign investors more power to promote the internationalization of the valuation system, the market can also provide a higher degree of market-oriented financial services professional skills, can also access a lot counterparties, to A market-oriented interest rate and exchange rate markets now…… Unfortunately, we missed the minimum cost of this reform opportunity.
At this point, we can still continue to open the financial door, but we do not act Nengna foreign money, only their own money, the reasons for that, in the past year the intensity of the austerity policy to allow the financial assets now substantially diminished, Foreigners can buy cheaper, which is since January this year, a substantial inflow of foreign investment rose 55 per cent of the reasons. Of course, at this time accelerated the deregulation of capital markets, in the political negotiations is beneficial: Because we all know that cheap, and the price can have more space.
But we have to remind that, if only to the capital market liberalization measures serve political interests of the exchange, rather than on the development of China's financial market to build their own needs and the reform of the financial market, it is likely to commit the wrong priorities. After all, political interests is the establishment of the national strategic interests based on the simple exchange of international political interests, not necessarily the interests of our national strategy to maximize the best choice.
Today, China's capital market development and construction, inflation did not become a nightmare, it still can draw on the next great room for development, to promote the bond market, short-mechanism, market-oriented distribution, medium and small investors, and other systems to protect the building And improved. The opening to the outside world, should open up internally, improve the internal system within the framework to advance, after all, foreign investors have come in the domestic market based on the rules of trading. If we missed the time before the deterioration of inflation, China's capital market-building process probably will be postponed for at least another 10 years.