To further expand the scope of foreign investors' participation in the domestic equity markets, the China Securities Regulatory Commission is soliciting public opinions on draft regulations that would allow foreigners working in China and employees of A-share listed companies in foreign countries that participate in the companies' stock ownership schemes to invest in the A-share market.
At present, the authorities allow three types of foreigners to one A-share account: those who have a permanent residence in China, those that set up foreign investment joint-stock companies in China and those who are foreign employees of A-share listed companies working in other countries who participate in their company's stock ownership incentive schemes. The latter two kinds of foreigners can only hold their own company's stock.
The new regulation on foreigners investing in the A-share market will accelerate the integration of China's securities and futures industry with the international market and it will be an important channel to attract foreign investment to support the development of China's real economy.
It will also increase market liquidity and optimize the capital market structure.