The China Securities Regulatory Commission (the CSRC) and
the Shanghai Stock Exchange (the SSE) will soon release a set
of rules and regulations relating to the disclosure
requirements applicable to foreign private issuers.
Known as the IB Regulations, they will regulate the
offerings of new shares by foreign issuers and their secondary
listings on the much anticipated International Board of the
SSE. The opening of the Chinese capital markets to foreign
issuers will perform a number of salutary internationalisation
functions including the internationalisation of Chinese
investors and Chinese consumers by way of exposure to the
issuer as corporate governance and disclosure paradigm and as
marketer of products and services.
Done well, a listing will have obvious reputational and
commercial benefits for the issuer as well. This step in the
internationalisation of Chinese capital and consumption markets
is a significant milestone towards the final
internationalisation – the currency.
It is likely that,...