China to let foreigners open A-share accounts

CHINA will allow foreign individuals working on the Chinese mainland to open A-share accounts, the China Securities Regulatory Commission said in a statement yesterday.

Foreign employees with equity incentives working in A-share listed companies overseas will also be allowed to open a securities account to trade in A-shares, according to the CSRC which is also seeking public opinion until August 8 on the issue.

The securities regulatory body of the countries of qualified foreigners should have already established a regulatory cooperation mechanism with the CSRC, according to the statement.

The revision in the draft rules aims to further open the mainland’s capital market to foreign investors as well as attract talents from all over the world to enhance the international competitiveness of the A-share market.

“The revision to the A-share securities account opening system is of great significance, will broaden the channels for capital inflow, optimize the market structure, and improve the openness and internationalization of the capital market,” the statement said.

Current rules only allow foreigners with China green cards to open A-share securities accounts and only lets foreigners who work in the mainland as board directors, senior managers, core technical personnel and core business staff to enjoy equity incentives.

The CSRC will

release the revised rules following procedures.

Related tax and foreign exchange policies will also be released to support the rules.