China to Allow Foreign Firms into A-share ListingChina will soon allow foreign companies to join China's A-share listings as part of the country's commitment to gradually opening up the capital market, according to Wednesday's Chinadaily."The listing of qualified companies with foreign investment will help improve the structure of the stock market," the paper quoted Zhou Xiaochuan, chairman of the China Securities Regulatory Commission (CSRC) as saying. Foreign investors will also be given wider accession to trading on domestic bourses through the program of registered qualified institutional investors and establishment of joint venture fund management firms, Zhou added. Experts said that more participation of foreign investment in the stock market would ignite trading and increase the market value of stocks. It will also channel more foreign capital to fund-thirsty domestic firms and urge them to increase transparency of their operations. China has initiated a series of reforms since early this year to boost market-oriented practices and attract more people to put part of their savings into stocks. Zhou said the commission would take measures to facilitate the debut of the open-end fund as early as possible. The government is also working hard to clinch a feasible mode by which the mammoth pension fund can trade stocks to increase in value. Other new financial tools to be unveiled include the long-awaited futures index, he said. |
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