File photo shows the exterior view of Shanghai Stock Exchange at Pudong New Area in Shanghai, east China. (Xinhua)
BEIJING, Feb. 13 (Xinhua) -- China's top securities regulator has unveiled revised provisions of the Stock Connect program between domestic and overseas stock exchanges to expand its scope.
Previously, only companies listed on the Shanghai and London stock exchanges can participate in Stock Connect. According to the new provisions released by the China Securities Regulatory Commission (CSRC) on Friday, eligible companies listed on the Shenzhen Stock Exchange will be included, along with stock exchanges in Switzerland and Germany.
The provisions, which already entered into force, introduce arrangements for allowing overseas issuers to raise capital in the domestic market through China Depositary Receipt offerings and adopt a market-inquiry pricing mechanism.
Better and more flexible arrangements are also made for annual report disclosure requirements and the disclosure of changes in share-holding, according to the provisions.
Considering that the quota for eastbound and westbound business is still ample, the total cross-border capital quota for the existing interconnected depositary receipt business remains unchanged. The quota for eastbound business remains at 250 billion yuan (about 39.26 billion U.S. dollars), while that for westbound remains at 300 billion yuan.
Adjustments will be made in terms of business situations and market demands, the CSRC said.
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