With the intention of strengthening its currency and also aiming to gain credibility with major international investors, China intends to open its capital markets abroad.
Therefore, the Chinese government is implementing in recent days measures such as the Shenzhen Connect, which connects the Shenzhen Stock Exchange with Hong Kong with the intention that the latter’s brokers can operate that market freely with the rest of the world.
And it is that, just as it works on the Shanghai Stock Exchange, the Hong Kong administrative region wants to claim the funds of the investors from all over the world and for this they pretend to give them freedom, thus obviating the different licenses and bureaucratic permits that finally and in the end End up paralyzing the intentions of the foreign investor.
Experts in the matter of the West have not hesitated to see this measure as China’s approach to international investment standards despite the fact that the Asian country continues to maintain levels of control superior to other bags like those of Wall Street or Europe.
It should also be recalled that with the recent election of the President of the United States, the speed of these measures can be increased since it should not be forgotten that to date there is a great dependence on the US dollar since many of its international investors Are still reluctant to renminbi or yuan, the country’s currency.
In fact, Chinese reserves are concentrated in dollars which could have negative effects in the event of a hypothetical depreciation of the dollar in the future.