ShenWan: China Wants Foreign Companies to Issue A-Shares

The merger of bank and insurance regulators shifts regulation from institutions to the market according to Shenwan's chief economist.

iFeng: 申银万国杨成长:“银保合并”是从管机构转变为管市场
According to Yang Geng, member of the National Committee of the Chinese People's Political Consultative Conference and chief economist of the Shenwan Hongyuan Securities Research Institute, there are five major characteristics of the State Council’s institutional reforms. Behind the “mergers and bankers merger” is the shift from financial supervision to controlling the market from the past. Separate operations, separate supervision, and the development of combined supervision and unified supervision.

At the same time, the reform plan also proposes to reform the state taxation and taxation management system and merge provincial and provincial taxation and land taxation agencies. Yang Geng said that merging the national tax and the local tax will increase the efficiency of taxation, and at the same time reduce some aspects of corporate taxation, which is conducive to the efficient and orderly administration of tax collection, and local integration.

Referring to the recent hot-selling "China Securities Exchange," he believes that this is a good thing for improving the A-share market structure and allowing domestic investors to understand the enterprise more clearly and is also an inevitable choice for enterprises.
The article goes into some detail. One interesting item: China wants foreign companies to list domestically:
Third, from a development perspective, we welcome overseas listed high-quality companies to return to the A-share market. This has two effects on the A-share market:

First, change the industrial structure of listed companies in the A-share market. China’s economic growth is undergoing a transformation. The role of the new economy, new business models, new models, technology-based companies, and Internet companies is increasing. However, at the current market value of listed companies, traditional industries still account for a major proportion, including banks, real estate, and steel. Coal and so on. Therefore, speaking from the perspective of market value ratio, it cannot fully reflect and represent changes in the industrial structure of listed companies, and it will also affect the effectiveness of market structure. After they returned, the proportion of the new economy, new forms of business, and new technologies increased, and the A-share market could play a better role.

In addition, the international market has pricing in foreign countries. “Return A” will accelerate the valuation of China’s science and technology, new internet companies and international standards, and promote the domestic market’s investment valuation concepts in the new economy, new business models, and new technology markets. The perfection of investment methods.

Background on the regulator merger:

FT: China to merge banking, insurance regulators

Reuters: Exclusive: China's regulators compete to look tough as political pressure mounts

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