A question of protecting market investors
By Lydia Chen |
May 21, 2011, Saturday
|
Print Edition
Print Edition
THE question China's top securities regulator needs to think about before the launch of Shanghai's international board is whether Chinese mainland investors can enjoy the same level of protection as their overseas counterparts, a former senior official of China Securities Regulatory Commission said yesterday.
Because of its short history, stock market regulations here are different from those in foreign countries, Laura Cha, former vice chairman of the CSRC, said at the Lujiazui Forum.
Investors in the international board, on which overseas-listed companies can sell yuan-backed shares, should not ask these companies for extra protection, but whether they can get protection equal to their overseas counterparts is still a key issue, said Cha, now vice chairman of the International Advisory Council of the CSRC.
The 61-year-old member of the Executive Council of Hong Kong also said the much-anticipated international board in Shanghai was not likely to pose any threats to the Hong Kong market.
"The investors in the international board are different from those in the Hong Kong stock exchange," Cha said. "The board in Shanghai is mainly open for mainland investors while few of them can open accounts in Hong Kong to trade shares."
"Secondly, most candidate companies for the new Shanghai board have already listed in other markets, including Hong Kong," Cha said. "It wouldn't be sensible for Hong Kong investors to dump their shares in Hong Kong and come to Shanghai to buy the shares of the same companies."
Andy Xie, an independent economist based in Shanghai, told the forum the board will help more overseas firms to be more localized and increase China's world influence.
Because of its short history, stock market regulations here are different from those in foreign countries, Laura Cha, former vice chairman of the CSRC, said at the Lujiazui Forum.
Investors in the international board, on which overseas-listed companies can sell yuan-backed shares, should not ask these companies for extra protection, but whether they can get protection equal to their overseas counterparts is still a key issue, said Cha, now vice chairman of the International Advisory Council of the CSRC.
The 61-year-old member of the Executive Council of Hong Kong also said the much-anticipated international board in Shanghai was not likely to pose any threats to the Hong Kong market.
"The investors in the international board are different from those in the Hong Kong stock exchange," Cha said. "The board in Shanghai is mainly open for mainland investors while few of them can open accounts in Hong Kong to trade shares."
"Secondly, most candidate companies for the new Shanghai board have already listed in other markets, including Hong Kong," Cha said. "It wouldn't be sensible for Hong Kong investors to dump their shares in Hong Kong and come to Shanghai to buy the shares of the same companies."
Andy Xie, an independent economist based in Shanghai, told the forum the board will help more overseas firms to be more localized and increase China's world influence.
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