Fang Xinghai, vice chairman of China Securities Regulatory Commission (CSRC), promised that China would continue its ongoing financial opening-up efforts when addressing the 2019 World Economic Forum on Tuesday, The Paper reported.
"Opening-up is good for China," said Fang, who pointed to the inclusion of China's A-share market into the world-leading MSCI equity index, saying that the move raised the quality of the A-share market and the Chinese government would also respond to the demand of foreign investors.
Fang took the change to the way stocks' closing prices were determined as an example to illustrate how the authority answered the call by foreign investors.
"The Shanghai Stock Exchange used to use the price set in the last transaction as the closing price of a stock for the day," said Fang. "We found that that wasn't a good way for foreign investors and thus replaced it with the average of the prices appearing in transactions during the last three minutes of a trading session."
Fang also acknowledged that two-way capital flow is one of the major issues which concern investors both at home and abroad the most, saying that China expects a dramatic increase in two-way capital flows.
Talking about China's approach to preventing financial crisis, Fang credited China's top-down financial regulation system for the country's success in avoiding major financial crisis over the past 40 years.
"It is this unique system that differentiates China from other countries," said Fang. "By keeping in touch with various financial regulators, the central government is able to timely step in and thus lower risks."
He said that China's macro-economic policies are very "responsive" and "data-dependent", which ensure that the government can make quick responses when warning signs appear.
Fang also noted that as a major global economic power, China would factor in the impact on global markets when making policies.
When it comes to China's economic slowdown, Fang stressed that the slowdown wouldn't amount to a disaster, saying that there is plenty of room for the Chinese government to implement more active fiscal policies if the situation gets worse.