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The Chairman of the China Securities Regulatory Commission (CSRC), has said in a recent interview that China seeks to open capital markets to further investment from foreign companies.
In recent months the CSRC has focused attention on controlling risks and limiting speculative behavior. Targeted behavior includes highly leveraged buyouts, and large investment firms which are seen to take advantage of poor, uneducated investors.
CSRC also indicates that it is reviewing measures to legalize foreign companies taking greater positions in domestic securities and futures brokerage Joint Ventures. China is also exploring ways to allow foreign invested companies, to list on Chinese stock exchanges.
The changes are part of China’s broader economic strategy to move away from a manufacturing and export based economy to a more advanced economy offering high end financial services and products. One of the key barriers to greater advancement in this end of the Chinese economy is the limitations on foreign investors. Lehman, Lee & Xu will keep you updated on new developments.
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