SSE 'has no plan for intl board in FTZ'
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E-mail China Daily, November 1, 2013
Shanghai bourse again rejected the possibility of introducing an international board – a platform for foreign companies to issue shares in China, in the free trade zone.
Xia Jianting, assistant general manager of the Shanghai Stock Exchange, said in Beijing on Wednesday that the the SSE had no plans to introduce the board in the FTZ, China Securities Journal reported.
The possibility of establishing the board, where shares in foreign companies would be denominated in yuan, as part of a broader effort to make Shanghai a global financial hub by 2020, had been discussed previously. Many foreign companies had shown an interest in a listing.
Xia also said deregulation will be the direction for reform of the capital market.
The capital market is constrained by the current financing and investment system, and is not giving sufficient support to high-tech industries, he said.
The SSE is discussing whether or not to improve its trading system, as Xia said. The "fat finger" incident in August, caused by an Everbright Securities' trading error, had led to a roller-coaster ride in the equity market.
