Money
Shanghai eyes int'l board launch in 2011 -official
(Agencies)
Updated: 2010-12-01 14:22
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China will hopefully start letting foreign companies sell shares in Shanghai next year, with approval processes for such listings to be made relatively simple, a city official said on Wednesday.
The comments by Fang Xinghai, Director-General of the Shanghai Financial Services Office, added clarity to long-standing plans for the "international board", which is part of the city's aim of becoming a global financial centre within a decade.
In September, Fang had said it was yet unclear when the international board would be launched, saying current rules were inadequate for the introduction of such cross-border products.
Speaking on the sidelines of a financial forum focused on cooperation between China and France, Fang said that Shanghai would encourage French companies to list there.
"We have agreed to encourage French companies to list on the international board in Shanghai, which will be launched hopefully sometime next year," Fang told reporters.
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That was because regulators were taking into consideration international practices and standards as they draw up the rules and legal framework for the board, he said.
"We will not let companies have the feeling that they will have to go through unacceptable procedure," Fang said.
At least two dozen foreign companies, including HSBC, which this year moved its global CEO to Hong Kong from London, have expressed an interest in seeking a listing on the Shanghai Stock Exchange.
China hopes the board for overseas firms could boost Shanghai's international standing and broaden investment channels for the country's growing yuan savings.