China plans to allow foreign individual investors to trade on its stock market. According to the plan, the government would allow foreign individual investors to open accounts at domestic brokerages to trade yuan-denominated A shares listed in Shanghai or Shenzhen.
The South China Morning Post reports that the China Securities Regulatory Commission (CSRC) is looking for the “further opening up China’s capital market”. According to a CSRC statement, the measure may help expand the investor base, introduce more liquidity, improve the investor structure, and make the A share market more open and international.
Foreigners who work on the Chinese mainland and those who work overseas for A-share listed companies and participate in the company's equity benefit plan will be allowed to open A-shares securities accounts, the China Securities Regulatory Commission said in a statement.
Foreign investors are only eligible when they come from countries or regions that have signed regulatory cooperative agreements with the Chinese securities regulator.
So far, 62 countries or regions have signed such agreements with China, including Hong Kong, US, UK, Singapore, Australia, and Japan.
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