Opening up of China’s capital markets


This chapter reviews the gradual opening up of China’s capital markets, including allowing foreign investors to enter China’s capital markets and allowing Chinese investors to go global. It argues that the unfair competition between SOEs and private firms for listing on China’s stock markets makes many Chinese private firms leave China in search of the financing opportunities of overseas IPOs. Although China’s government tightly controls overseas listing, many Chinese private firms have developed innovative ways, such as the VIE model, for overseas listing. In addition, the chapter discusses the internationalization of Chinese securities firms and developing joint venture securities firms in ...

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