Markets
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Equity
Foreign Investors Rating among A-shares with highest A+ grade expected to rise 20% in second half 2023
Months before the outbreak of Covid-19 pandemic China had removed investment quota on Qualified Financial Institutional Investor (QFII), and trading bands for Hong Kong Stock Connect (accessing China’s A-shares from HKEx) also increased as China Securities Regulatory Commission (CSRC) vying to attract foreign investments. Most importantly, the highest governing body, the State Council has also given clear instruction to encourage greater participation of foreign investors. Aptly put it, President Xi has reiterated that ‘China will uphold openness, and unswervingly expand in opening up so that the Chinese market will become a global, shared market – it’s everyone's market’.
On positive notes, China stock markets were ranked highest in returns for 2020, the Shenzhen Stock Exchange rose 36%, and Shanghai placed in the world’s top 10, and A-shares’ total market capitalization (excluding HK, Taiwan and Chinese companies listed outside China) had exceeded RMB 70 trillion (USD 12 trillion), second largest after the U.S. The active and liquid trading in the Chinese stock markets is huge motivator for foreign stockbrokers and financial institutions to initiate a broader and comprehensive research coverage in recent years.
Under such pretexts, China Knowledge has launched a barometer and rating system to boost the urgency and relevancy of investor relations (IR) of China’s listed companies; and such ratings allow