China’s top securities regulator announced on Sunday that it will allow foreign individual investors to trade domestic A shares through local brokers, reflecting the latest step in widening foreign access to the country’s US$6.4 trillion stock market.
The regulator said it will allow two types of foreigners to open stock trading accounts:
Foreign nationals working in China
Foreigners working overseas for A-shares listed companies.
Still, not all foreign individual investors are eligible to qualify under the proposal. The CSRC said eligible foreign investors must come from countries or regions that have signed regulatory cooperative agreements with the Chinese securities regulator.
So far, 62 countries or regions have signed such agreements with China, including Hong Kong, US, UK, Singapore, Australia, and Japan.
The guideline sought public opinions on this new regulation for a month starting Sunday.
Previously, foreigners who wanted to invest in A-shares market had to meet one of the following conditions:
Obtaining permanent residence ID cards in China,
Setting up a company listed domestically,
Working for listed firms in China.
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Source:CGTN, SCMP, Shine
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