china may allow foreign firms to list: govt

Fingers crossed~ :)

BEIJING (AFP) - China may allow foreign firms with investments inside the country to list domestically, as part of efforts to boost trader confidence during the global downturn, according to an official.

"We will continue to actively work with relevant authorities to study and complete the policy of allowing foreign-invested companies to list in the country," Vice Commerce Minister Chen Jian told reporters.

"We will guide high-quality foreign-invested companies to carry out domestic listings at appropriate times," he said.

The remarks came as figures showed foreign direct investment in China had fallen for an eighth straight month in June as overseas companies grow more cautious due to the crisis.

The latest data also show China received 34.05 billion dollars of foreign investment in the first five months of the year, down 20.4 percent from the same period a year ago.

The government is planning policies to stabilise foreign investment, with a focus on projects that will help create jobs, save energy and protect the environment, Chen said.

"We will continue to work on the creation of a stable and transparent policy environment, level and open market conditions, and regulated and efficient administrative services for foreign investment," he said.

However, Chen indicated there would be no change to an order announced last month stating domestic firms should be prioritised in bids for projects that are part of a 585-billion-dollar stimulus package unveiled last year.

"The problem now is not that we are protecting (Chinese companies), but that there are signs that domestic products are discriminated against. We just want an impartial environment," he said.