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)
