The UK Telegraph reported yesterday that…
The State Council, the equivalent of a ministerial cabinet in China , said foreign companies would be allowed to raise money through the Shanghai stock exchange and also to issue bonds in China.
It also said that it aimed to develop “several financial derivatives based on stock indexes, exchange rates, interest rates, bonds and bank loans”.
The report goes on to say…..
“Shanghai has a relatively complete financial market… a strong manufacturing base and technology innovation capability," the Cabinet said. “It is a natural choice to continue to give play to Shanghai’s model role in leading China’s development." It did not specify, however, the timing of when the market will open to foreign companies.
The Shanghai market is the mainland’s largest and the city is the biggest port in the world, with a cargo throughput of 580m tons last year.
The move came after an announcement earlier this year that Shanghai should overtake Hong Kong as the pre-eminent banking centre in China.
Shanghai has held employment fairs in London and New York to try to lure expertise to the city.
Full Report at http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5255082/Shanghai-stock-market-opens-to-foreign-firms.html
