Chinanews, Beijing, October 23 – According to the report to the 17th CPC National Congress (made by General Secretary Hu Jingtao on behalf of the CPC Central Committee), China will enhance the reform of its financial system and the development of various financial markets to work out a complete, efficient and secure modern financial market. Experts believe the Chinese capital market will have a new chance of booming to become one of the most important markets in the world, and China will rank itself among emerging financial centers by then.

The Chinese securities market has changed greatly in the past five years. Now the total value of the Chinese stock market has broken 2.8 trillion yuan to become the biggest emerging stock market and the 4th biggest of all stock markets worldwide. China’s overall economic strength is also ranked among top 4 in the world. Current securitization rate in China is 130%, while 5 years ago it was only 20%. The stock market’s role in the country’s economy has never been more important.

The report to the 17th CPC National Congress also calls for the optimization¹ of the structure of the capital market to provide various financing channels.

“In the future, the structure of listed companies in the Chinese capital market will become better and better, with blue chips as majority of the market,” said Wu Xiaoqiu, the director of the Institute of Finance and Securities of the Renmin University of China.

“There will be multi-sources for listed enterprises in the future. Besides local ones, the enterprises of other emerging countries and even developed countries will seek their way to be listed in the Chinese stock market,” said Wu.

The capitals in the market will come from various sources, too. Foreign capital may enter China in the form of QFII, while natural persons might be allowed to make investment on the stock market, too. In a word, the Chinese capital market will become highly internationalized. During that process, RMB will become convertible², and it will be made an important international reserve currency.