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Last updated at: (Beijing Time) Wednesday, December 12, 2001

CSRC Announces Securities Commitments for WTO Entry

The China Securities Regulatory Commission (CSRC) announced Chinese securities sector's major promises to the World Trade Organization (WTO) Tuesday when China formally became a WTO member December 11.


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The promises are as follows, according to CSRC:

  • Overseas securities institutions may directly engage in transactions of Chinese B shares.


  • Overseas securities institutions' agents in China can become special members of all Chinese bourses.


  • Overseas institutions will be allowed to establish cooperative companies engaging in the management of domestic securities investment funds. The proportion of overseas funds will be limited within 33 percent initially, and no more than 49 percent within the post-entry three years.


  • Also within the same period, overseas securities companies will be allowed to set up cooperative companies, with the overseas investment proportion to be limited within one third of the whole.


  • cooperative companies can engage in the underwriting of Chinese A-shares , the underwriting and trading of B-shares, H- shares, and government and cooperate bonds, the commission spokesman said, adding that they can even launch foundations.


    • The spokesman noted that the opening of the securities sector and opening of the securities market are two different concepts, and the latter is not subject to the WTO agreement.



    Foreign-funded Companies Given Green Light to Get Listed in China and to Enjoy National Treatment

    The China Securities Regulatory Commission (CSRC) and Ministry of Foreign Trade and Economic Cooperation (MFTEC) co-promulgated Guidelines to Listed Firms with Foreign Capital Involved to regulate the listing of foreign-funded firms in China recently.

    According to the guidelines, any foreign-funded holdings company who seeks listing in China (A or B shares or both), is supposed to satisfy the requirements of industrial policy for foreign investment and share listing. Moreover, the shareholding proportion in foreign shares should be no less than 10% after the listing of the company. To apply for making IPO, a foreign shareholding company should submit required materials for application as well as its warrant of annual united inspection and operation license to the CSRC.

    The CSRC said that it endeavors to create more opportunities for those foreign-funded enterprises with longer history in China, good credit and ability to make profit to get listed in China and to grant them national treatment as soon as they are listed.



    		    Advanced

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