Institutional investors waiting to invest in China's securities
market now have detailed rules to go by.
On
Sunday, China officially issued and enforced regulations on
securities investments by qualified foreign institutional investors
(QFIIs) on the Shanghai Stock Exchange.
China had previously issued interim regulations on the
administration of securities investments by QFIIs in early
November, which were not detailed enough.
According to the new regulations, foreign investors should use
securities companies inside China in securities trading.
Each licensed foreign investor can only acquire up to 10 percent of
the stocks in a listed company. Stocks held by more than one
foreign investor cannot exceed 20 percent of total stocks of a
listed company, according to the regulations.
A
stock exchange official said due to technical reasons, QFIIs were
temporarily banned from participating in treasury bond buy-backs
and trading in corporate bonds.
(Xinhua News Agency December 2, 2002)