Circular of the China Securities Regulatory Commission and the State Administration of Foreign Exchange on Issues Concerning Investments by Individual Domestic Residents in Foreign Currency Stocks Listed in the Domestic Stock Markets
Circular of the China Securities Regulatory Commission and the State Administration of Foreign Exchange on Issues Concerning Investments by Individual Domestic Residents in Foreign Currency Stocks Listed in the Domestic Stock Markets
Circular of the China Securities Regulatory Commission and the State Administration of Foreign Exchange on Issues Concerning Investments by Individual Domestic Residents in Foreign Currency Stocks Listed in the Domestic Stock Markets
Zheng Jian Fa [2001] No.22
February 22, 2001
To all Securities Regulatory Offices, Sub-Offices, Representative Offices, and branches, the Beijing and Chongqing Departments of State Administration of Foreign Exchange (SAFE), the Shanghai and Shenzhen Stock Exchanges, all commercial banks, securities companies, and investment trust companies:
In order to promote the sound development of foreign currency stocks as listed in the domestic stock markets (hereinafter referred to as "B shares"), maintain the normal operation of both the B shares and the foreign exchange markets, safeguard the legal rights of the investors and regulate the conduct of the participants in the stock market, this notice is hereby issued by the China Securities Regulatory Commission (hereinafter referred to as the "CSRC") in regard to the following issues:
Article 1 Pursuant to Article 4 of the Provisions of the State Council on Foreign Currency Stocks Listed in the Domestic Stock Market Issued by Joint Stock Limited Companies (Decree No.189 of the State Council, 1995] and the decision made by the CSRC on February 19, 2001 concerning the approval of investments by domestic residents in the B Share market, individual domestic residents may, by adhering to this notice, invest in the B shares.
Article 2 Prior June 1, 2001, those domestic residents who intend to invest in the B shares, may only use a foreign exchange account or foreign currency account which was opened in a domestic commercial bank before and including the date of February 19, 2001. However, foreign currencies in cash or those transacted from other sources rather than from the aforementioned foreign currency deposit accounts may not be invested in the B shares.
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