|China to Open Stock Exchanges for Foreign Investors|
|by Tom McGregor||Thu, Jun 21, 2012, 12:08 AM|
BEIJING: China intends to relax entry regulations for foreign investors. The national securities regulator has sought to ease entry rules for foreign investors, the most recent step in its bid to open up its financial markets.
According to the BBC News, “it has proposed lowering the amount of assets under management and cutting the minimum number of years of experience needed for firms entering its markets.”
The government wants to attract larger foreign investment to boost its economic expansion. The country, the world’s second-largest economy, has faced a slowdown in growth.
As reported by the BBC, “China’s Securities Commission (CSRC) said in a statement that the move will help to attract long-term offshore funds, ‘strengthen confidence in the domestic market’ and promote the ‘steady development and opening up of our country’s capital markets.’”
Enterprises that seek to enter China’s capital markets must apply for a license under the Qualified Foreign Institutional Investor (QFII) program.
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