China may allow foreign firms to issue mainland shares

The People’s Bank of China is considering allowing foreign companies to issue shares on the mainland as part of its drive to reform the convertibility of the yuan and open up China’s capital market, reports the South China Morning Post. Beijing will press ahead with reforms to allow individuals to invest in overseas capital markets directly, according to the central bank’s 2015 annual report released on Tuesday. It came as state ¬media reported details of Premier Li Keqiang’s meeting on Monday with senior officials overseeing the mainland’s financial system. Beijing hopes introducing foreign companies to the mainland’s capital market will give more options to choice-starved investors and shore up the corporate governance of domestic listed firms.