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Rules to Govern B Share Trading Promulgated
The China Securities Regulatory Commission (CSRC) and the State Administration of Foreign Exchange issued a joint circular to rule the trading of hard-currency B shares by domestic investors. Details of the circular are as follows:
Before June 1, 2001, domestic investors are only allowed to use spot exchange deposits and foreign currency cash deposits in China's home commercial banks prior to February 19, 2001 in B share trading.
Foreign currency in cash and other foreign currency capital likewise cannot be used. Spot exchange deposits and foreign currency cash deposits, which were saved in banks before February 19, 2001 and transferred in other accounts for maturity hereafter, can be employed in B share trading. After June 1, 2001, the domestic investors will be allowed to use spot exchange deposits and foreign currency cash deposits, which are saved in commercial banks within China after February 19, 2001, and inward foreign currency capital from outside in B share trading. Foreign currency in cash is still not applicable.
By PD Online Staff Du Minghua
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