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Beijing prepares steps for boost to B-shares market

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Measures to rev up the foreigners-only B-shares market will soon be launched by Beijing in a bid to stimulate the sector.

A stamp-duty cut for B-share trading and the removal of restrictions in order to allow mainland companies that meet listing requirements to issue B shares have been announced by Beijing in the past few weeks, according to Xinhua. That means private and foreign-funded companies will be allowed to issue B shares.

Xinhua, citing industry sources, said the measures included the setting up of Sino-foreign joint-venture funds to trade in B shares, the expansion of the investors' base and an improvement in the issuing methods of B shares.

'There are some other positive measures that are being studied by the authorities, and are expected to be implemented soon,' Xinhua reported.

Xinhua also quoted a senior official of the China Securities Regulatory Commission as saying that the regulator was also mapping out measures to develop and nurture the B-share market.

The latest policy forms part of a concerted effort by authorities to link rising stock markets to reflating the economy, highlighted by an editorial in People's Daily - the Chinese Communist Party's official mouthpiece - on Tuesday.

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