China seeks to consolidate channels for foreign investment

China's top securities regulator said on Friday the country will gradually unify and streamline channels for foreign investors to trade in domestic markets, as part of its efforts to advance capital market opening-up this year.

The country will also improve the rules governing overseas listed Chinese firms and work with foreign regulators to strengthen the crackdown on cross-border securities violations, the China Securities Regulatory Commission said in a statement on Friday.

At present, foreign investors take part in the mainland stock market via stock connect programs with Hong Kong and qualified foreign institutional investor programs, namely QFII and RQFII.

The statement came after the commission held a meeting on Thursday to summarize its work in the first half of the year and make arrangements for the second.

The CSRC will stick with the regulatory principles of improving the fundamental rules of the capital market, minimizing administrative interventions and strictly punishing capital market violations, to spur high-quality market development and serve the recovery of the real economy.

Specifically, the commission will step up efforts to pilot institutional innovation in areas like the registration-based initial public offering, real estate investment trusts and securities class action, while formulating rules for compulsory buyback of fraudulently floated shares and cracking down on illegal margin financing.