A number of foreigners in China have recently opened A-share securities accounts, since the securities regulator approved regulation amendments on Sept. 15, allowing them to do so. Many of these investors prefer to put their money into old-age care, automation and robotics, thepaper.cn reported on Sept.24, 2018.
The first batch of foreign investors come predominantly from the US, Japan, and Australia, many of whom have been in China for years and are already fluent in Chinese.
Ms. Hayashi, a Japanese woman who has lived in east China’s Shanghai since 1998, became the first foreigner to open an A-share security account in a branch of China’s Everbright Securities.
Japan’s financial management yield is lower, said Hayashi, disclosing that she had opened a B-share account during her early years in China, and had been hoping to enter China’s A-share market for some time. She added that old-age care is her field of preference.
An American man named Mike expressed that he would enter the A-share market immediately after opening a new account, at another major securities trader Guotai Junan Securities. The man, who works in the financial information industry, sees a bright future in automation and robotics.
"Previously, foreigners didn't have much choice for investment in China, so I invested my money in the US. However, now we have great opportunities here in both work and investment," expressed Mike, adding that he would start to research listed companies, and would be happy if the annual rate of return could reach 6 percent.
According to relevant regulations, foreigners who are eligible for an A-share security account are those who work overseas for a Chinese A-share listed company and enjoy share-based compensation or those that currently work in China.
Also, foreign investors should be from countries whose securities regulators have established regulatory cooperation mechanisms with the China Securities Regulatory Commission. To date, China has signed 68 memorandums of cooperation and understanding with 62 countries and regions around the world.
Securities traders in China have put in a great deal of effort to materialize the new regulations. Everbright Securities is planning to launch a dedicated platform with bilingual services for foreign investors, Guotai Junan Securities has added new access for foreign investors in its mobile app, and Huatai Securities will provide customized and specialized services for foreigners, such as special investment packages and industry reports in English.