China's Two Stock Exchanges Tend to Be MergedChina's two stock exchanges in Shanghai and Shenzhen will march toward the direction of merger in the future, hinted Geng Liang, vice-chairman of China Securities Regulatory Commission (CSRC).Though a vast country, China will not increase the number of stock exchanges in the future, for the capital market should be a unified one. Viewed from the world development trend, the amalgamation of stock exchanges is a tendency. Nevertheless, Geng reaffirmed that there is still no timetable for the merger of China's A and B shares and at least this issue will not be touched upon in coming five years. Geng made the remark when interviewed by Kuala Lumpur-based Nanyang Siang Pau at the Asia-Pacific session of the International Organization of Securities Commissions. He said China's opening of the B-share market is not aimed at encouraging merger of A and B shares but at putting limited domestic foreign funds into the Chinese market, so as to prevent the flow-away of China's foreign exchange. It's not proper for a developing country like China to put its limited foreign funds on the overseas market, he said. In spite of that, it is widely agreed that A-share is China's main stock and opening the B-share market will accelerate the merger of A and B shares. Then a price balance between them will be achieved with A share as the mainstay. By PD Online staff member Li Heng |
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