Efforts being made to optimize stock connect programs

Continued efforts will be made to optimize the depositary receipts issuance under stock connect programs so that the overseas listing channels will be further expanded for Chinese companies, China Securities Regulatory Commission, the country's top securities watchdog, said on Friday.

Cross-border securities investment will be further facilitated. Qualified Chinese financial institutions, which have outbound plans, will receive more support in order to participate in the global market. In this way, institutions can better serve domestic Chinese companies to use the resources in both domestic and international markets, said the CSRC.

The CSRC made these comments in a response to a suggestion raised at the fifth session of the 13th National People's Congress.

Optimizing the connectivity programs linking the onshore and overseas capital markets is conducive to the institutional opening-up of the Chinese capital market. It will help to expand the two-way financing channels and facilitate the stable development of China's real economy, the CSRC said in the response.

While domestic investors are allowed to purchase the global depositary receipts released by Chinese companies, State-owned institutions are encouraged to make similar investments, said the CSRC.

As of end October, a total of 13 A-share companies have issued GDRs at the stock exchanges in the United Kingdom and Switzerland, raising about $9 billion (62.5 million yuan). Some State-owned financial institutions have already invested in some of these GDRs, said the CSRC.

The CSRC also released, on Friday, the revised confidentiality and file management rules for the overseas listing filing management system, providing clearer instructions. The revised rules have also optimized the cooperation mechanism for cross-border supervision.

Companies seeking direct or indirect listings in overseas markets are all applicable to the revised rules.