Securities Regulator Dismisses Near-future Launch of Int'l Board

China's securities regulator on Sunday dampened the hope for allowing overseas companies to go public in domestic equity markets soon, saying that the launch of "international board" needs a lot of preparations and China does not have a timetable for it.

Guo Shuqing, chairman of the China Securities Regulatory Commission, made the remarks at a group interview on the sidelines of the 18th National Congress of the Communist Party of China, which opened on Nov. 8.

"We have no plans to launch the international trading board in the near future and there are still a lot of issues (in connection with the launch) that need to be addressed, such as issues concerning trading, law, accounting and regulations," Guo said.

The launch of the international board, which will allow foreign firms to sell yuan-denominated shares in China, was stated in a document issued by the State Council, or China's Cabinet, in 2009.

However, many economists and financial experts have voiced opposition to foreign companies listing in the domestic market, largely because they believe that neither the market environment nor China's A-shares operating system are ready for introducing foreign companies.

Guo dismissed concerns that the launch of the international board would draw funds away from domestic shares and send their prices down further. Chinese stocks have sunk about 6 percent this year.

The impact on the market by the launch of international board would not be as big as expected, Guo said, adding that China's huge deposit reserves and great market potential would make the future launch of the new board affordable to domestic investors.

According to Guo, the combined market value of China's listed companies in domestic markets equals to only one fifth of the US stock market.

The government will accelerate the development of the capital market and make it play a better role in improving fund allocation and preserving the value of residents' deposits, Guo told reporters.