China's A-share market will be open to foreign investors in five years to add competition and agility to the market, a top financial strategist said Wednesday at a seminar focusing on the future of China's two stock exchanges.
"China's A share market will open up to the world step by step in the coming five years and it will allow foreign funds' gradual participation," said Dong Fureng, deputy director of the Finance Commission of China's People's Political Consultative Conference.
"Foreign funds' infusion is imperative in China as its entry to the free trade organization, or the World Trade Organization, is pending," Dong added.
Now foreign funds are only allowed in the hard-currency B share market in Shanghai and Shenzhen, and their sluggish performance has been the main concern of China's financial watchdogs.
The large amount of hard-currency infusion into A share markets will be beneficial to the money flow and to the whole operation of the stock market, Dong said.
Overseas stock brokers are also likely to be welcome in the future, and creating joint ventures among the brokers may be the first step to take, he said.
(Eastday 11/16/2000)
