China’s top two stock exchanges, the Shanghai and Shenzhen bourses, are actively engaging with foreign money managers and investment banks in a bid to boost investor sentiment following a rocky start to the year. The exchanges recently met with representatives from 16 overseas financial institutions to gather insights on revitalizing the market.
The renewed focus on attracting foreign investors comes in the wake of the market’s worst performance at the start of a year since 2016. The recent shift towards more aggressive monetary and fiscal measures by Chinese regulators has sparked optimism about the country’s economic outlook, instilling confidence among global investors.
During the meetings, participants recommended increased communication efforts, including more detailed presentations on Chinese policies and overseas roadshows featuring leading companies. These initiatives aim to provide foreign investors with a deeper understanding of the Chinese economy and the performance of publicly traded firms.
The Shenzhen Stock Exchange emphasized the positive feedback received from foreign institutions regarding the Chinese government’s commitment to stabilizing economic growth. Attendees expressed confidence in the combination of existing and new policies, which have bolstered global investors’ trust and laid a strong foundation for the long-term development of China’s capital market.
The challenging start to the year was marked by significant fluctuations in both the Hong Kong and mainland China stock markets. The CSI 300 Index, representing onshore stocks, experienced a nearly 3% decline on the first trading day, triggering concerns among investors. Despite the benchmark’s 15% gain the previous year, the subdued beginning to the new year underscores the cautious approach adopted by investors awaiting robust stimulus measures.
Overall, the efforts by the Shanghai and Shenzhen stock exchanges to engage with overseas investors reflect a broader strategy to enhance market stability and attract foreign capital. The ongoing dialogues and collaborative initiatives aim to foster a more transparent and investor-friendly environment, ultimately contributing to the long-term growth and resilience of China’s financial markets.
