Foreign investment restriction eased
(Xinhua)
Updated: 2006-06-08 09:27
Multinationals will be allowed to invest in the Chinese currency-dominated A
share market through their investment subsidiaries in China as of July 1, said
the Ministry of Commerce on Wednesday.
Previously, China's A share
market was only open to foreign corporations and organizations that had overseas
assets of not less than 100 million U.S. dollars or managed overseas assets of
not less than 500 million dollars.
The new supplementary regulation
released by the ministry requires foreign funded investment companies to have
registered capital of 30million dollars. The move is seen as a sign the country
is loosening control of its capital market.
The revision was "profound
and significant", said Zhou Jia, chief financial officer of Kodak (China).
Many of the world's heavyweight multinationals have established
investment subsidiaries in China, Zhou said.
The revision is due to take
effect on July 1.
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