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H shares told to stick to plan

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SCMP Reporter

CHINA'S new securities supremo has called for overseas-listed Chinese companies to adhere to plans to spend listing proceeds as part of the effort to enhance foreign investor confidence.

In his first public speech to H-share companies since his takeover as chairman of the China Securities Regulatory Commission (CSRC) in March, Zhou Daojiong praised the system allowing Chinese state enterprises to issue shares abroad.

Mr Zhou said the move was 'important to China's development of the securities market, the promotion of the open door policy and economic development'.

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But he said there were problems yet to be resolved for overseas listing.

Companies were not familiar with the legal systems of international capital markets and regulatory requirements after listing.

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In addition, foreign investors had to take time to understand China's economic development and the quality of its companies, he said.

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