ONCE again, there is hope that foreign investors can participate in China's A share market.
According to a report by Xinhua (the New China News Agency) foreign participation in China's A-share market is back on the agenda.
People's Bank of China (PBC) spokesman Ouyang Weimin was quoted saying: 'Opening the A share market to foreigners with overseas funds is an important measure to standardise and internationalise China's stock markets.
'But since the move could have both good and bad effects, it should be done cautiously and in two steps.' He was reported to have said as much at a financial seminar in Beijing last week.
According to Mr Ouyang, the first step would involve the selection of foreign investors with 'high credibility' willing to abide by Chinese laws and regulations.
Initially, foreigners would be allowed to buy only A shares that also had B and H share listings.
