Shanghai investment opportunities coming for savvy investors
Door widens for overseas companies that settle trades in renminbi
Overseas investors should learn more about how the Shanghai market is regulated before taking calculated measures to invest in any new schemes available, say counsel.
It was recently reported that the Shanghai government is pushing to further open up its domestic A-share market to foreign companies with cross-border trading accounts at local banks. An investment quota system similar to the Qualified Foreign Institutional Investor (QFII) programme is expected to be adopted, and the equities, bonds and interbank credit markets are under review as possible investment channels.
The expected move, announced by the head of the Shanghai Financial Service Office, is being viewed as part of the Shanghai government's drive to make the city an international financial centre by 2020.
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