Financial Regulatory Forum

China to let partnerships invest in stocks

By Reuters Staff
October 13, 2009

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) ((lan.wang1@thomsonreuters.com; +86 139 0111 6692; Reuters Messaging: lan.wang1.thomsonreuters.com@reuters.net))

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
  •