China plans to allow foreign stock exchanges establish
representative offices in the country provided they satisfy
and adhere to certain conditions.
be eligible, the stock exchanges should be in operation
for over 20 years and the home countries of the exchanges
should have signed memorandum of understanding on supervision
cooperation with the China Securities Regulatory Commission
offices are also required to report to the CSRC their
large-scale promotion plans targeted at local businesses
and can go ahead only if they get no rejection from the
securities regulator 10 days after the reporting
rules also ordered the offices to submit written reports
to the CSRC 10 days after they give severe penalties to
the companies listed on their stock exchanges.
less than half of the staff at the office should be Chinese.
The rules also apply to the stock exchanges in Hong Kong,
Macao and Taiwan.
representative offices can only do non-operating activities,
including liaison, promotion and research, the rules stated.
Violators will face warning, confiscation of all illegal
earnings, or even closure.
Chinese authorities are, meanwhile, working on the financial
requirements, rules for which are expected to come into
effect on July 1.
say the move is expected to facilitate the listing of
more Chinese companies abroad.