Foreign firms are supported to issue stock in China

Based on recently published opinions in wider use of foreign capitals, <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />China would open more areas to encourage foreign investment in high-end manufacturing, new and high technology industries, modern-service industries, and the new energy, energy-conservation and environmental protection industries. On the other hand, the resource-dependent and over-capacity projects would be severely restricted.  The opinions involve five aspects like “optimize of foreign capital utilization”, “shifting of foreign capitals to western areas”, “utilizing of foreign capitals in various ways”, etc.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

To promote diversified foreign investment, the government would encourage foreign investment covering the fields of merger, stock holding to share the acquisition of domestic industries, and help the qualified foreign-owned firms to issue stocks, bonds and mid-term bills in China, in order to enlarge investment channels.

Related regulations have been provided in the opinions for A share companies in absorbing overseas funds, so as to insuring normal operations.

The document of the opinions also required on qualified firms to go abroad for development, handling perfectly the inward and outward markets in a bid for higher competitiveness, and also push foreign companies to open venture enterprises by using private equity funds.