City Guide
Answers
Login
Home
/
Community
/
Forums
/ Post a Reply
Post a Reply
Thread: Buy the stocks in "Chindia"?
Title:
(100 characters at most)
Content: ( 3,000 characters at most, please )
You can add emoticons below to your post by clicking them.
[quote=MARRIE,301189]No national securities regulation statute governs securities firms in China. Foreign participation in securities firms on China's two official equities markets, Shenzhen and Shanghai, is regulated both by local and national law. The local PBOC branches in Shenzhen and Shanghai retain final regulatory authority over the respective exchanges, although both the Shanghai Stock Exchange (SHSE) and the Shenzhen Stock Exchange (SZSE) have significant rule-making power.140 Securities firms, both foreign and domestic, are governed by the rules adopted by both the Shanghai and the Shenzhen securities markets. Foreign securities firms cannot broker foreign securities in China and can only broker &shares to their foreign clients. Foreign investors are not allowed to own more than five percent of any issuer's &shares.l41 Investors in B-shares must open &share accounts on the SHSE or SZSE that are considered overseas accounts and no inflows or outflows are allowed without the prior approval of the local State Administration for Exchange Control (SAEC) branch.l42 Foreign securities firms cannot provide investment advice and cannot manage a mutual fund.l43 Foreign securities firms may invest in B-shares for their own account either directly or through mutual funds, and, to a limited extent, facilitate Chinese investment in foreign securities.144 Foreign firms do not participate in clearance and settlement in China's stock markets; clearance and settlement on the SHSE is done by an inter-dealer association under PBOC supervision, and on the SZSE, it is done by the local PBOC branch.l45 China's stock transaction costs are high, in part because of failures in the clearance and settlement system. By allowing foreign securities firms with clearance and settlement experience to freely compete on China's securities market, the PRC should foster confidence in the clearance and settlement system and lower the market's transaction costs. [/quote]
characters left
Name:
Get a new code