Beijing Solicits Public Opinion As Part Of ‘Opening Up’ Initiative, Chinese Stocks Bounce Back
Beijing has started soliciting public opinions on a proposed industry catalog that should boost the country's opening-up initiative. China previously pledged to give more foreign businesses access to the world's second-largest economy.
According to Xinhua, the National Development and Reform Commission (NDRC) and Ministry of Commerce released a proposal that was based on two revised documents. One of the documents centered on some of China's less prosperous regions such as the southern part of Hainan Province and a couple of areas in the western and central regions.
The other document focused on appealing to foreign investors - an aspect that will give China a better stand on its pledge to open up a wide range of Chinese sects to foreign businesses.
Some of the sectors that China wants to open up to foreign investors are advanced manufacturing, modern agriculture, technology, and modernized services that should benefit both investors and the Chinese market.
Over the past months, China has stayed true to its vow of easing up on foreign investments. Beijing started rolling out measures for easier access to the market. The government has also maintained that it will offer investors a transparent and fair environment where they can grow their businesses.
The Chinese people are encouraged to share their insights on the proposed industry catalog for foreign investments. Comments will be accepted until March 2.
Meanwhile, the Shanghai Composite Index has provided stock market enthusiasts with a lot of positivity as it reversed previous declining records in 2018. Better figures in January ignited hopes for Chinese stocks to recover following last year's beating.
According to The South China Morning Post, the Shanghai Composite Index soared by 3.6 percent in January. This is by far the highest figure since January of last year. Analysts believe the rise of Chinese stocks was affected by inflows from foreign investors who were encouraged by the government's opening up program.
Previously, stock market experts predicted that Chinese stocks would recover later in 2019. However, the rebound took place earlier than expected, promoting foreign buyers to consider investing in various industries.
The latest data revealed that foreigners acquired a new estimate of 66.4 billion yuan or $9.85 billion in January. Mainland-traded stocks made by foreign investments last month came through Hong Kong's stock index.
While some financial experts have warned against potential resistance to the Hang Seng Index when it reaches the 28,000 level, it is expected that stock traders will get back in the game following the holiday rush.