China holds significant long-term growth prospects for global investors, said Loh Boon Chye, chairman of the World Federation of Exchanges, on the sidelines of the Global Investor Conference in tech hub of Shenzhen on Monday.
The two-day Global Investor Conference focuses on showcasing Chinese investment assets and A-share market opportunities, with a theme of "New Quality Productive Forces: New Opportunities in China -- An Open and Innovative Shenzhen Market."
Held by the Shenzhen Stock Exchange, the event drew over 400 guests and more than 100 investment institutes across the world to discuss new investment opportunities in China.
After his speech on China's high-quality and innovation-driven development on Monday, Loh said in an interview that international investors value China's capital market potential in light of global economic fluctuations.
"In a world of volatility and uncertainty, Asia, including China, still holds significant long-term growth prospects for investors who hold a long-term view, looking for portfolio diversification. Asia, including China, continues to offer interesting and good opportunities for investment," he said.
Loh, who also serves as CEO of Singapore Exchange (SGX), said his agency is helping investors manage geopolitical risks and promote offshore RMB use in cross-border investments in today's uncertain times.
"In fact, the trade tensions that we witnessed in the last few months has most evidently manifested in the movements in currency. Our FX listed derivatives, saw record trading volumes. Forty percent of the volumes now come from the U.S. and European time zone, which really means investors are actively managing risks in such uncertain times," he said.
"With China's growing economy, the RMB is the second largest trade finance currency today. It is an important currency in terms of trade flows. For the SGX, we accept offshore RMB as margin collateral, also for trading and clearing. In fact, our USD/CNH FX derivatives is the largest globally. And Singapore being a third largest FX trading center and Singapore being an important international financial hub, SGX looks to play an important and partnership role to promote the use of RMB in the cross-border and trade flow," Loh added.
China holds long-term growth prospects for investors: World Federation of Exchanges chairman
China and the European Union (EU) have agreed that it is necessary to provide general guidance on price undertakings for Chinese exporters of passenger battery electric vehicles to the EU, China's commerce ministry said on Monday.
The move aims to address relevant concerns in a more practical, targeted, and consistent manner with World Trade Organization (WTO) rules, according to the Ministry of Commerce in a statement.
Accordingly, the European Commission will issue a Guidance Document on Submission of Price Undertaking Offers. In the document, the EU confirms that it will assess each undertaking application under the same legal criteria, in accordance with the principle of non-discrimination and relevant WTO rules, in an objective and fair manner.
The progress fully reflects the spirit of dialogue and the outcomes of consultations between China and the EU. It shows that both China and the EU have the ability and willingness to properly resolve differences through dialogue and consultation within the framework of WTO rules, thereby maintaining the stability of automotive industrial and supply chains in China, the EU, and the whole world. This is conducive not only to ensuring the healthy development of China-EU economic and trade relations, but also to safeguarding the rules-based international trade order, the statement said.
On the same day, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) also issued a statement welcoming the positive outcome of the consultations.
The CCCME noted that eligible Chinese EV makers may now submit price undertaking applications in accordance with the EU's guidance, and the European Commission has pledged to review all applications objectively, fairly, and under uniform standards.
The proper settlement of this case meets the shared expectations of industries along the EV supply chain in both China and Europe. It will help ensure the security and stability of related industrial and supply chains and safeguard the broader China-EU economic and trade relationship, the CCCME said.
The chamber expressed appreciation for the substantial efforts made by China's Ministry of Commerce in defending the interests of the domestic industry. It also pledged to encourage and support relevant Chinese enterprises in making full use of the consultation outcomes to protect their interests in exporting to the EU and promote healthy cooperation between the industries of both sides.
China, EU agree on price undertaking guidance for Chinese electric vehicle exporters: commerce ministry
