Shanghai to give foreign workers access to share options for locally-listed firms to attract more funds and talent
- Move comes as protests put Hong Kong’s status as region’s financial centre at risk, analysts say
- Step is part of Shanghai’s bid to be a global financial powerhouse
Shanghai plans to allow foreigners employed by regional headquarters of multinational companies to receive stock options on the A-share market, part of its bid to become a global financial powerhouse.
The step comes as ongoing protests in Hong Kong pose a threat to its status as the region’s established financial centre.
The stock options guideline, published Tuesday, aims at encouraging more regional headquarters to be set up in Shanghai. It represents the latest efforts by the mainland’s most developed metropolis to wield its influence worldwide.
The municipal government said it is working with the State Administration of Foreign Exchange to allow foreign employees to purchase mainland-listed A shares and to grant them access to share option incentives.
“It won’t be a large volume of employee stock options for foreigners,” said Hong Lingyun, a senior executive with Shanghai-based recruitment service firm Joinlink Consulting. “But it is a sign that regulators want to facilitate foreign companies to grant stock options to their employees and attract global talent.”