ID :
182709
Tue, 05/17/2011 - 15:19
Auther :

China set to launch int'l bourse for foreign companies



By Kim Young-gyo
HONG KONG, May 17 (Yonhap) -- China is set to launch a special bourse where foreign companies can be listed, a media report said Tuesday, a move that will promote China's further participation in international financial markets.
According to the Beijing-based Securities Daily, the local bourse operator in Shanghai has completed preparing an "international bourse," on which shares in companies with foreign capital can be issued and traded.
"The bourse can launch anytime upon the approval from the top authorities," the news report said, citing an anonymous official who was involved in setting up the new bourse.
The international bourse will be set up at the Shanghai Stock Exchange. The other two stock exchanges operating in China are the Shenzhen Stock Exchange and the Hong Kong Stock Exchange.
The currency to be used for trading will be the Chinese yuan and not the U.S. dollar, the official was quoted as saying.
The report said the global bourse will also help mitigate hot money inflows, acting as one of the gateways for foreign capital to move in and out of China.
Hot money, which refers to funds that flow into a country to take advantage of favorable interest rates to obtain higher returns, has been a major concern for the Chinese monetary authorities.
The flow of the speculative money into China is estimated to have been accelerating on expectations of the Chinese yuan's appreciation and higher interest rates.
ygkim@yna.co.kr

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