(Yicai Global) Oct. 28 -- China will further open up to foreigners by enhancing its forex market and welcoming them to trade on the new Star market, according to the deputy head of the State Administration of Foreign Exchange.
China encourages overseas investors to invest in firms listed on the Star market, Lu Lei said during a speech at the Inaugural Bund Summit in Shanghai yesterday.
The Star market, a Nasdaq-style board that opened for business in Shanghai in July, aims to make it easier for Chinese science and technology companies to raise funds. So far 36 companies have listed on the board.
The SAFE will also set up pilot programs to study how international trade could be paid in foreign currencies in China and will promote the development of the yuan-denominated forex derivates market to build an open and competitive market, Lu said.
The government will support foreign-funded institutions, even eligible non-financial ones, to set up securities and futures trading companies in Shanghai or buy equities of local ones, he said.
The SAFE also promotes the use of blockchain and artificial intelligence technologies in cross-border trade financing and macroprudential analysis to control risks, Lu added.
Editor: Emmi Laine