The Casino Goes Global? Context and Access to China's Capital Markets for International Investors

The dissertation critically analyses the pathways for international investors to get access to Chinese capital markets. In order to investigate this aspect, the author presents a historical overview of the main features of past and present markets in China, starting from the first emergence of “shares” in the 1860s, and ending in current times. A comparison between the various periods is put forward. Gradualism emerges as one of the key aspects of modern reforms, guiding both internal renovation and capital account opening. It is in this context that international investors have operated since the ignition of the first prominent program that granted access to mainland capital markets in 2002. Inward and outward portfolio investments have been strictly regulated by Chinese authorities: however, the gradual process of reforms has been carried out in this field too. The author identifies two main strategies of entry into mainland capital markets: “getting onshore” and “investing from offshore”. The options are critically explained and compared. Finally, the latest developments in portfolio investment liberalisation and future perspectives are discussed.