Shanghai to increase shares for foreign joint venture investors
( chinadaily.com.cn )
Shanghai is working on increasing the proportion of shares owned by foreign investors in joint ventures, says Zheng Yang, an officer of Shanghai finance department, at the 2016 Lujiazui Forum on June 13. [Photo/eastday.com]
Shanghai is working on increasing the proportion of shares owned by foreign investors in joint ventures, said Zheng Yang, an officer of the city's finance department, at the 2016 Lujiazui Forum on June 13.
After implementation, the practice could add a greater depth of knowledge and experience to China's financial reform and opening up.
Zheng told the forum that Shanghai's biggest strength is its openness. To maintain its strength, the city has to open up more. One way to do that is to attract more international organizations and foreign-funded institutions to the city.
However, last year Shanghai saw lower participation rate of overseas investors at only 3 percent, compared with 30 percent for Hong Kong.
Fortunately, the city's free trade zone's financial reform brought in last October provided a boost to new opportunities and the city's process of opening up, as three quarters of the reform measures centered on further opening up the finance sector.
Zheng also emphasized that to reach the goal of expanding opening up, the city needs to do more, including enhancing financial regulation, improving financial services, and doing better in financial risk aversion.