The China Securities Regulatory Commission (CSRC) said on Tuesday it would uphold principles that are "open, fair and just" in the process for approving the stock listings of foreign-invested companies.
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.
(China Daily November 14, 2001)
