China to Expand Stock Connect in Further Market Opening

The vice chairman of the CSRC discussed plans to increase foreign investment in Chinese markets. He emphasized the need for more options for foreign investors, including easier access to stock connect and commodities futures. The speech highlighted the benefits of foreign investment, such as market rationalization and better valuations. Currently, foreign investors hold less than 5% of Chinese stocks, compared to higher percentages in Japan and South Korea. The CSRC plans to take concrete steps to encourage more foreign investment, coinciding with regulatory changes that allow Wall Street firms to expand in China.

What impact has the opening up of Chinese markets had on market rationalization?

What role do Wall Street firms play in the context of foreign investment in China?