In a press release, the market watchdog said it is exploring new issues of concern, which include reinforcing the disclosure of information concerning affiliated transactions, tax favours foreign-funded companies have enjoyed and other issues resulting from expected revisions of preferential policies after China enters the World Trade Organization (WTO).

The CSRC said it would allow foreign-invested firms to issue and list renminbi shares on trial basis before it develops a broad range of related regulations.

After more than 10 years of development, the time is right for China's stock market to "accept the entry of more foreign-invested companies into the market and issue shares in a standard and orderly manner," according to the CSRC.

The commission will support foreign-invested companies that "are committed to long term development in China" and demonstrate a sound operational mechanism and have a good reputation to enter the market.

By highlighting examples of prestigious multinational firms that will benefit from the domestic capital market, more first-class foreign firms will be attracted into the country and help improve the way of using foreign capital, it said.

(Xinhua News Agency November 14, 2001)