Foreign-invested Companies Allowed to List on China’s Stock Market

    In order to expand fields of Sino-foreign cooperation, encourage new investment modes and optimize the structure of foreign investment, China will gradually reduce limits on the equity stake proportion allowed to overseas investors. Qualified foreign-funded enterprises will be permitted to list on the country’s stock market, according to Minister of Commerce Chen Deming. Under the impact of the global economic downturn, the number of newly-established foreign-funded enterprises in China only came to 12,264 in the first seven months this year, and active foreign direct investment totaled US $48.4 billion. This represents a year-on-year drop of 27.4 percent and 20.4 percent respectively. Chen said that in order to enhance two-way investment, China would open up service industries and encourage foreign companies to invest in high and new technology sectors.