Shanghai plans to allow foreigners employed by regional headquarters of multinational companies to receive stock options on the A-share market, part of its bid to become a global financial powerhouse, said the South China Morning Post.
The municipal government said it is working with the State Administration of Foreign Exchange to allow foreign employees to purchase mainland-listed A shares and to grant them access to share option incentives. The stock options guideline, published Tuesday, aims at encouraging more regional headquarters to be set up in Shanghai.
An A-share option gives an investor the right to buy or sell a stock at an agreed upon price and date, and is viewed as a compensation contract between an employer and its workers. Typically, it is offered as part of the employee’s pay package.