Gao said that the process of opening China's securities market to the outside world includes three aspects: namely, going out to make use of the international securities markets and encourage domestic financial institutions to participate in international competition; inviting foreign firms to China to attract foreign financial institutions and capital to participate in investing in the Chinese domestic market; and comprehensively opening the market to allow foreign enterprises to issue and list securities in China.

The official also briefed on the five near-term tasks for the opening of Chinese securities markets.

First, after China's entry into the WTO, foreign security organizations will be allowed to have seats and make direct dealing in B-share through stock exchanges, and Sino-foreign joint-venture securities management companies and fund management companies are permitted to be established;

Second, China will, as always, encourage more well-performed Chinese enterprises to list abroad;

Third, when conditions mature, China will gradually allow qualified foreign enterprises to issue and list stocks in China;

Fourth, China will actively create conditions for Chinese securities companies in conformity with internal and external legal conditions to set up branches abroad.

Fifth, at appropriate time, China will permit foreign capital to enter into Chinese securities markets in a controlled and systematic manner.

(People's Daily 12/19/2000)