CSRC Reveals Contents of Opening Securities Market after WTO

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Last updated at: (Beijing Time) Friday, December 07, 2001

CSRC Reveals Contents of Opening Securities Market after WTO

Officials from the China Securities Regulatory Commission (CSRC) has lately revealed the contents of opening securities market in five aspects after China's WTO entry.

Officials from the China Securities Regulatory Commission (CSRC) has lately revealed the contents of opening securities market in five aspects after China's WTO entry.

The QDII mechanism, which allows mainlanders to invest overseas, is not included in these five aspects, according to Hong Kong based Wen Wai Po, while it is clearly stated that foreign capital is permitted to enter step by step into Chinese securities market at measured strokes when time is ripe.

The five aspects are as follows:

First, China will allow foreign securities institutions to directly deal in B share through special seats set up in stock exchanges after WTO entry.

Secondly, more competitive-competent domestic enterprises are encouraged to list overseas. While still encouraging them to list in Hong Kong market, global securities markets are to be tapped in such as New York, London, Tokyo, Singapore and Australia.

Thirdly, China is to gradually permit qualified foreign-funded enterprises to issue stocks and get listed in China when conditions are mature.

Fourthly, Chinese-foreign joint ventures on securities and fund management are to be set up.

Fifthly, in proper times, foreign capital will be allowed to penetrate into Chinese securities market in a controlled way and at measured strokes.

By PD Online staff Li Heng

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