China Business

Feb 16, 2006

Foreigners to be allowed A-share accounts

BEIJING - Foreign investors and investors from Hong Kong, Macau and Taiwan who have purchased A-shares through strategic investment in listed companies from mainland China have been permitted to directly open accounts for trading of A-shares listed on the Shanghai and Shenzhen stock exchanges

with the Shanghai and Shenzhen branches of the China Securities Depository and Clearing Corporation (CSDCC), according to a notice issued by the CSDCC on February 14. But a second account may not be opened if the investor already has opened a securities account with the CSDCC, the notice said.

In opening such an account, the applicant should present the documents of approval given by the Chinese Ministry of Commerce and the China Securities Regulatory Commission (CSRC) that agree to the investor's strategic investment in the listed company and their duplicates. Certificates for shareholding issued by listed companies are also valid for presentation.

The notice stresses that the aforesaid investors do not include qualified foreign institutional investors (QFIIs), and implies that the technical barriers on foreign mergers and acquisition of domestic listed companies have been fully removed.

(Asia Pulse/XIC)

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