Stocks News
- Rules drafted for foreign bourse offices
Date: 15-Jan-2007 Sources: (Shenzhen Daily)
THE government is drafting rules that would pave the way for foreign stock exchanges to set up offices on the mainland, a senior regulatory official said Saturday, denying that two U.S. exchanges had already done so.
During a December visit by U.S. Treasury Secretary Henry Paulson, China agreed that NYSE Group Inc., parent of the New York Stock Exchange, and NASDAQ could open offices in Beijing, while the U.S. Government gave the green light for China to join the Inter-American Development Bank.
'We are now making the rules regulating offices of foreign stock exchanges in China and only after we put out the rules can they apply to set up,'Tu Guangshao, vice chairman of China Securities Regulatory Commission (CSRC), said.
The government is encouraging the country's top firms to list both at home and overseas, to bolster domestic bourses while capturing international investors' enthusiasm for China's booming economy.
But Tu denied that the two rival bourses were already in the process of setting up offices.
The government has opened the A-share market to foreign investors through a quota system, diverting interest in U.S. or Hong Kong dollar-denominated B-share markets originally designed to attract foreigners to China's then-infant markets.
Rumors that the A and B-share markets would merge lifted B shares Thursday, but were denied by CSRC officials. B shares trade at a steep discount to their A-share counterparts.
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