CSRC: Domestic A-share exchanges to open to foreigners

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Foreign nationals working in China will be able to trade A-shares on domestic exchanges from next month, following alterations to laws announced Wednesday by the China Securities Regulatory Commission (CSRC).

In a statement published on its website, the CSRC confirmed that “qualified foreigners” would now be added to a list of approved A-share investors, “enriching sources of investment and expanding capital channels.”

“Qualified foreigners” refer to foreign nationals working in China who are originally from the 62 countries and regions that have regulatory cooperative agreements with China’s securities authorities. According to CSRC’s website, the list of applicable countries includes the US, the UK, Japan and Russia.

The updated rules will come into effect from September 15, allowing an estimated 900,000 foreign nationals working in China to open A-share accounts with domestic brokers and trade on exchanges in Shanghai and Shenzhen.

According to Xinhua, foreign nationals looking to open A-share accounts will need to apply to the CSRC using their passport, an employment certificate issued by a domestic institution, their employer’s business license or unified social credit code registration certificate.

Residents of Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan have been able to open mainland A-share accounts since April 2013, with 125,000 accounts opened, according to Xinhua.

The only way foreign nationals can currently trade domestic A-shares is through Hong Kong’s Stock Connect program with indices in Shanghai and Shenzhen.

Foreign nationals will also be able to take part in share-incentive plans established by their employers, regardless of where they reside.

The CSRC said that issues concerning tax and foreign exchange will be resolved ahead of September 15.