Overseas firms encouraged in mainland stock market

Updated: 2007-12-02 13:55

BEIJING -- China encourages overseas firms and Hong Kong-listed domestic companies to go public in Chinese mainland market, said top securities regulator Shang Fulin on Saturday, as the country seeks to enlarge the capacity of its capital market.

"We wish they could choose to get listed in our A share market." said Shang. "We also support existing companies to boost its scale through assets regrouping and integration."

Sources with the Shanghai Stock Exchange said the bourse was considering introducing international firms that perform well in China.

China Securities Regulatory Commission (CSRC) will continue to absorb large and well-performing firms into the country's stock market, Shang said.

China has sped up the listing of large State-owned enterprises (SOEs) mainly in oil and chemicals, telecommunications, transportation and metallurgy industries in the past few years, which not only diversified the ownership of SOEs but also gave a de factor boost to mainland bourse.

Acknowledging that "China's existing capital market needs further improvements," Shang rated the establishment of a multi-tier capital market as one of the urgent tasks in current economic development.

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