China still ‘exploring’ international board for foreign companies to raise funds on Shanghai Stock Exchange
- News likely ‘in foreseeable future,’ says Fang Xinghai of China’s securities regulator
- Global heavyweights earlier expressed interest in raising yuan-denominated capital on such a board
Shanghai’s ambitions to transform itself into a global finance hub on par with New York and London includes a long-discussed international board to attract foreign corporate giants to raise funds on the mainland stock market.
The plan is still alive, a key official says, but needs approval from the State Council, China’s cabinet.
“We are exploring it, and I believe there will be some news about the board in foreseeable future,” Fang Xinghai, vice-chairman of the China Securities Regulatory Commission (CSRC), said on Thursday at a key gathering of leading Chinese figures in economics and finance in Shanghai. “Please wait and see.”
The idea has been kicking around for three years.
Global heavyweights including HSBC and Coca-Cola expressed their interest in raising yuan-denominated capital on the board when it was raised earlier.
The international board was put on ice in early 2016 when the CSRC looked to bolster investor confidence after a market meltdown that began in the previous summer.