The Shanghai Stock Exchange aims to have its first foreign company listed within the year, an executive said yesterday.
"We hope we can see one by the end of the year," said Xie Wei, deputy general manager of the Shanghai exchange. "We aim to become an international exchange. Any exchange with no foreign companies listed cannot be called as an internationalized bourse."
China Securities Regulatory Commission Chairman Shang Fulin said December last year that China encourages overseas firms to sell yuan-denominated A shares on the mainland exchanges in a move to enlarge the capacity of the capital market.
"As the mainland's smaller bourse, the Shenzhen Stock Exchange, is set to launch a Nasdaq-like growth board in the second half, the Shanghai exchange has to hurry up its growth to include more other competitive elements," said a director at a leading domestic securities brokerage.
Xie, speaking at an event celebrating the establishment of the Shanghai representative office by Japan's Toyo Securities Co, said there are still difficulties to be solved before the first listing can be completed, although the exchange has been studying the plan for getting international companies that perform well in China to list domestically.
A number of multinational companies, including HSBC Holdings Plc, have discussed with relevant Chinese authorities on potential A share listings.
BOC International (China) Ltd Executive Director Wang Hong said the mainland market could be an ideal place for overseas companies to raise funds, and a listing could also enhance awareness of multinational companies on the mainland.
According to Xie, the Shanghai bourse plans to grow its international portfolio through cross shareholdings with other exchanges in Asia and the West acquisitions.
(Shanghai Daily May 23, 2008)