A hard line

Author: | Published: 11 Jul 2011

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,...