MNI China Press Digest July 26: Capital Market, A Shares, HKMA

Highlights from Chinese press reports on Wednesday:

• China will further deepen capital market reform and opening up in H2, according to the China Securities Regulatory Commission. At a recent meeting, China’s top securities regulator said authorities would develop the real-estate investment trust market, build the Beijing Stock Exchange and support private firms to achieve high-quality growth through the capital markets. Policymakers will further stimulate the capital market to better serve high-quality development and work to maintain financing channels for real-estate companies. (Source: 21st Century Herald)
• The single-day net purchase of northbound funds near CNY19 billion hit a new high this year on Tuesday, along with major A-share indexes moving higher across the board as the Politburo meeting this week largely boosted confidence in the economic outlook. It also marks the sixth single-day net purchase record since the opening of the Shanghai and Shenzhen Stock Connect. Meanwhile, the falling US dollar index and stronger yuan will fuel a return of overseas funds. The net inflow of northbound funds this year is expected to be about CNY300 billion, after reaching about CNY200 billion so far, said Meng Lei, China Equity Strategist at UBS Securities. (Source: Shanghai Securities News)
• Hong Kong Monetary Authority Chief Eddie Yue remains confident in the Mainland’s mid- and long-term economic growth during a recent visit to Beijing. Yue said Hong Kong can facilitate the yuan’s internationalisation in accordance with the orderly development of China's economy. Investors should feel confident in the Hong Kong dollar currency board despite the recent carry trade driving funds towards US dollar because authorities had designed the system to deal with a free flow of funds, Yue said. Investors will increase demand for CNY in future due to the safe-haven status and low settlement costs. (Source: Yicai)