JPMorgan's China CEO side: Gem has limited impact on the market

Every reporter Ma 骎 from Shanghai JPMorgan Chase China CEO Fang yesterday in this newspaper participated in the "2009 Shanghai International Financial Forum" during the interview, he pointed out that the launch of the gem will be limited to the market impact.　　Gem diversion funds will not be too many NBD: How do you think of the introduction of a A-share gem?　　Fang: This is a new measure of the development of China's capital market, which is beneficial to the development of China's capital market itself and the direct financing of Chinese enterprises, especially to solve the problem of SME financing.　　NBD: Is the market generally predicting that the gem has a high P/E ratio and will suffer a snub? Fang: The biggest feature of the capital market is that pricing is determined by the market and is determined by supply and demand. Gem listing what I want to see is neither soaring nor plunging.　　I believe that if we can achieve a smooth listing, this will be a A-share gem market mature performance.　　NBD: Does it happen to stir fry?　　Fang: If there is a stir, this is obviously not the ideal result, but it is better than no gem, because from the overall market is still in the right direction. NBD: What do you think of the A-share valuation level?　　Will the launch of the gem bring pressure to the market capital? Fang: JPMorgan analysts are bullish on the A-share market, saying that the fundamentals of China's economy and the fundamentals of companies are better.　　I think the launch of the gem will not be too big for the market, China's investors holding a lot of money, the market capital is not the main concern, the GEM diversion funds will not be too much, NBD: Then how do you think the success or failure of Hong Kong's gem? Fang: Hong Kong's gem has been a great help to Hong Kong's economic development under the historical conditions of the time. But the development of a capital market is not determined by the will of the people or the will of the regulator, the development of the capital market is long-lived, and it is related to the supply and demand of the investment in the market.　　I have confidence in the gem of a A-share market.　　Push the international board in the right direction NBD: The market is also looking forward to the introduction of international board, how do you evaluate its significance to the capital market? Fang: This will be the internationalization of capital markets, the internationalization of the renminbi and China's development of the global financial center of the major initiatives, is very correct direction, but in the specific implementation of the specific details of the problem to be solved, to carry out the so-called "bold hypothesis, careful verification."　　In general, a way to develop the renminbi into a non-Chinese enterprise financing method in various forms is the right route, should actively explore, the renminbi from the trade currency into the financing currency, in this regard can establish the offshore renminbi market, in addition to renminbi-denominated foreign shares, bonds issued transactions are the right direction to explore.　　NBD: International board launches, how to solve the exchange problem brought by RMB issue of shares? Fang: This is a very detailed technical issue and does not affect the big direction. In particular, if a number of enterprises in China have a big investment plan, in China after financing can directly to China to invest, can solve the exchange problem, while hedging the exchange rate risk. The problem is very complicated, but from the general direction, the idea of the international board is correct.