China to let partnerships invest in stocks
BEIJING, Oct 13 (Reuters) – China will allow partnership enterprises to invest in stocks as part of efforts to expand its capital markets, according to draft rules published by the securities regulator on Tuesday.
It was not clear which companies would be classified as eligible partnerships, but the China Securities Regulatory Commission (CSRC) said that foreign-invested venture capital firms could be included.
Only domestic residents, Chinese corporations with legal personalities and foreign firms allocated strict quotas are currently permitted to invest in China’s stock markets.
The CSRC said the new rule was aimed at diversifying the country’s base of investors and at attracting more financing for technological innovation.
The rules, in draft form, were posted on the regulator’s website (www.csrc.gov.cn).
(Reporting by Aileen Wang and Simon Rabinovitch) ((firstname.lastname@example.org; +86 139 0111 6692; Reuters Messaging: email@example.com))