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Stock Markets' Shares Expected to Be Merged
China's A-share market, which is only open to domestic investors, and the B-share market, reserved for overseas investors, are expected to merge in the near future.
Liang Dingbang, chief advisor to the China Securities Regulatory Commission, said in Shanghai recently that China is considering allowing overseas investors into the A-share market as part of an endeavor to boost the securities market.
"If overseas investors are permitted to invest in A shares, listed companies may consider re-purchasing B shares, and the A- share and B-share markets will then be united naturally," Liang said. The merger of the two shares is not through government decrees, he noted.
Chinese enterprises have issued 108 B shares on the two stock markets in Shanghai and Shenzhen, raising more than US$5 billion.
However, due to such reasons as the irrational structure of the shares, the B-share market has long been sluggish.
"Merging the two markets will have a positive effect on China's securities market," Liang added.
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