Shang Fulin, head of China's securities market watchdog, said Thursday the amount of Chinese individual investment in the stock market of Hong Kong will be limited in the initial stage and will not have obvious impact on the A-share market of the mainland.
Shang, chairman of the China Securities Regulatory Commission (CSRC), said the commission is making more assessment and improvement on the specific regulations about individual investment in Hong Kong.
He also noted that the commission does not change its policies of supporting domestic companies to go public in Hong Kong stock market.
Shang made the remarks at the Inaugural Annual Meeting of the New Champions held in northeast China's coastal city of Dalian.
Concerning the long-awaited stock index futures, Shang said preparations have been basically finished.
Preparations in terms of technology and mechanism are near completion, but investors still need to get prepared, he explained.
He did not give a specific date for putting the futures into operation, only noting that it will debut "when the conditions are ripe."
The stock index futures is usually used as a tool against drastic fluctuations in the stock market.
Talking about sino-foreign securities firms, Shang said his commission will resume the approval of such joint ventures.
"Allowing foreign capital into China's securities business will help promote the capabilities of the whole industry," said Shang, adding that the commission is engaged in research on the resumption.
Foreign capital can enter China's securities market by setting up companies, cooperating with investment banks, or acquiring shares in licensed securities firms in China, Shang said.
The date to resume approval is yet to be decided, he added.
(Xinhua News Agency September 6, 2007)
