No date yet for international shares board

There is no time schedule to launch the international board for share trading in China although the government is preparing to accelerate financial reform and plans to boost the opening up of capital markets, an official from the top regulatory agency said.

The country's 12th Five-year Plan (2011-15) included an intention to build the international board for overseas companies to issue yuan-denominated shares in the mainland capital market so it is not a new reform measure, the official with the China Securities Regulatory Commission (CSRC) said.

The new board scheme should be continually improved based on the existing framework because the issues of law, accounting and foreign exchange control are complicated, according to the CSRC.

"Now relevant ministries and departments are studying the system's design as well as the regulations for foreign companies issuing yuan-dominated shares in the mainland," the official said.

A senior manager from the Shanghai Stock Exchange also disclosed that there is no immediate plan to open the new board because preparation work is still going on.

"It is not a good time now to launch the international board because the A-share market is still sluggish," said Li Xunlei, chief economist with Haitong Securities Co Ltd.

Along with the gloomy economic environment, foreign companies also have low expectations about raising funds from the Chinese market, Li said.

chenjia1@chinadaily.com.cn