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Foreign A/B-shares Issuance Embraced: MOFTEC
The much-concerned issue of allowing foreign enterprises to list in China's stock market has made significant progress. Foreign-invested joint stock companies in China can apply for A or B shares issuance, according to a circular lately released by the Ministry of Foreign Trade and Economic Cooperation (MOFTEC), implying that the gate for foreign limited companies to list in China's stock market has been opened.
Some relevant authorities are laying down specific operating rules and the listing for these companies will be on agenda as soon as the rules come out.
But the acquiring for A-shares or B-shares should be approved by the MOFTEC, according to the circular. Besides, they should be set up or restructured in line with relevant rules and be in accordance with the State's industry policies for foreign investment. Further, the proportion of non-tradable shares to the total capital stock should not be lower than 25%.
The circular asks the application by foreign-funded companies for foreign-invested joint stock restructuring should be in tune with relevant regulations and get nodded by the MOFTEC
By PD Online Staff Li Heng
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