Mainland China is considering setting up a new stock exchange to lure back overseas-listed Chinese companies and boost the global standing of the domestic stock market, Reuters said, citing two people familiar with the matter.
Reuters cited people familiar with the matter as saying that the mainland State Council has asked senior regulator officials to lead a study on how to design the exchange, which would target mainland Chinese companies listed in overseas markets such as Hong Kong and the United States.
One of the sources said top mainland Chinese leaders also want the exchange to also attract large multinational companies such as Apple and tesla, which could develop local businesses and list on the platform.
One option being discussed is to upgrade an existing listing platform, such as Beijing‘s “New Third Board” market, the sources said. Discussions about setting up a new stock exchange are in the early stages, and the timing and location have not yet been decided.
The U.S. Securities and Exchange Commission (SEC) said earlier that it has adopted a measure passed by the U.S. Congress to delist foreign companies from U.S. stock exchanges if they do not comply with U.S. accounting auditing standards.
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