SHANGHAI (Reuters) – The head Morgan Stanley The China Securities Enterprise of (NYSE:) has proposed the establishment of an international board of directors in China to allow Chinese companies to list overseas and foreign companies to list in the stock market. domestic.
Jing Qian, CEO of Morgan Stanley Securities (China), also told Shanghai Securities News in an interview that China should consider lowering the profitability threshold for initial public offerings. IPOs of technology companies and startups.
Morgan Stanley confirmed the interview.
The proposal comes as a growing number of Chinese companies dealing with the United States are undertaking secondary listings in Hong Kong due to a protracted dispute between China and the United States over audits that threatens to push them away. out of US exchanges.
The Shanghai Stock Exchange prepared for the establishment of an international board more than a decade ago to attract listings of multinational companies like HSBC, but the plan never materialized.
Qian said in the interview that as China expands its capital markets further, calls for the establishment of an international board have grown louder.
The newspaper said that allowing quality global companies to list in China could help create competition, open investment channels for domestic investors and increase international attractiveness. of the Chinese stock market.
As China expands its IPO reform, regulators may first allow overseas-listed companies to sell shares to the domestic public before transferring them to international companies, she said.
Although China has allowed domestic listings of so-called red chip companies – companies that merge overseas with businesses mainly in China – this is too high, Qian said. About half of the red chips listed in Hong Kong are not eligible for listing in China.
Common difficulties are complex approval processes and inadequate market capitalization.
Qian also suggested that China relax the profit requirements under its subscription-based IPO system, to allow more pre-listed profit companies on the STAR Market to focus on Shanghai’s technology and the association. co-starter Shenzhen ChiNext.
Morgan Stanley Securities (China), controlled by Morgan Stanley 94.06%, is moving towards full ownership.
The securities venture currently employs more than 180 people and has completed eight IPO underwriting deals, according to the company.
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