Zhanghua: On actively promoting exchange cooperation and merger proposals

Zhanghua at present, the global Exchange merger and purchase tide is surging. The merger of the Singapore Exchange and the Australian stock Exchange last October, followed by a tie-up between the LSE and the Toronto Exchange this January, particularly the merger agreement between NYSE Euronext and Deutsche Exchange in early February, has aroused widespread concern and enthusiastic response from the financial community. The combined wind of global exchanges bodes well for the consolidation and major changes in global financial markets.　　It also presents new challenges and issues for Chinese exchanges that are moving further towards marketization and internationalization. We must pay attention to the essence of global stock Exchange integration, that is, technological progress, mechanism innovation, increase efficiency, reduce operating costs and move towards global financial integration in order to achieve overall competitiveness. The NYSE's alliance with Germany will not only save operating costs, but also help to increase the speed of clearing the exchange, implement a global 24-hour deal and obtain a more comprehensive platform for trading financial products.　　These will greatly enhance their market competitiveness, and undoubtedly to the HKEx and Shanghai and Shenzhen exchanges to bring competitive pressure and market impact, should arouse our high attention. Of course, as far as reality is concerned, there are still some technical problems with the merger of HKEx and the mainland Shanghai and Shenzhen exchanges, for example, the Shanghai and Shenzhen exchanges are not a joint stock company and the renminbi is not convertible freely. It is suggested that the central government should step up financial reform and consider implementing the shareholding system of the mainland exchange and actively comply with the trend of international financial market development. At present, Hong Kong, Shanghai and Shenzhen exchanges do not have the merger conditions at this stage, we should first deepen regional cooperation and enhance the capacity of the two exchanges to raise funds to achieve the expansion of business scope, complementary advantages of synergy, but also for the future gradually towards the merger to create conditions for a "first cooperation after the merger　　With Chinese characteristics of the financial market development path, and ultimately achieve the establishment of the Taiwan exchange, including the "Greater China exchange" goal. To this end, I suggest that one should actively carry out the cooperation of financial products settled in renminbi. For example, vigorously promoting Hong Kong's role as an offshore clearing house for IPOs, bonds and ETFs in the Hong Kong market, enhancing the competitiveness of attracting the world's largest enterprises and enterprises of ASEAN countries to listing in Hong Kong, thereby consolidating and enhancing the status of our international financial Centre,　　It is also an important step towards internationalization of the renminbi. Two. Hong Kong and the mainland investors two-way investment in stocks, further active financial markets in both places.　　To relax the legal investment of Hong Kong dollars by mainland residents and to allow the free sale of mainland Chinese shares with renminbi to the local people, so as to enhance the sense of belonging of the people of Hong Kong to the motherland, and to provide a good investment channel for the surplus funds of the mainland, and help to reduce inflationary pressures in the　　Three. Under the framework of CEPA, the principle of "first try" allows Hong Kong securities companies to co-operate with the mainland trade in the trading of shares between the two markets, rather than merely staying at the current level where the joint venture company can only conduct advisory business, so as to deepen the closer economic and trade cooperation between Hong Kong and the mainland and achieve mutual benefit and win- In, it is imperative to reform the mainland exchanges, and actively promote the cooperation and merger of Hong Kong, Shanghai and Shenzhen exchanges is a good opportunity for us to adapt to the new trends in the development of international financial markets, so that Hong Kong compatriots and the mainland people forge ahead together, in the history of the great rejuvenation of the Chinese nation,