(Xinhua)
Updated: 2007-09-04 22:10

The New York Stock Exchange (NYSE) has been given green light to open a representative office in Beijing, the Chinese securities regulator announced Tuesday.

The approval, the first after China's rules allowing overseas bourses to set up offices came into effect on July 1, will enable the NYSE to woo more initial public offerings in the fastest-growing major economy.

Before the approval only Hong Kong Exchanges and Clearing Limited established a representative office in Beijing in 2003 in accordance with the Closer Economic Partnership Arrangement between the Chinese mainland and Hong Kong.

China's nod given to the NYSE to open Beijing office indicates its active efforts in materializing the fruits of its first strategic economic dialogue with the United States held in December last year, the China Securities Regulatory Commission (CSRC) said.

On May 20 China unveiled the management rules that give green light to the establishment of representative offices of overseas stock exchanges in the country.

The NYSE can only do non-operating activities including liaison, promotion and research and is required to submit reports to the CSRC on the work of its Beijing office as well as on the information of its listed Chinese firms and members.

China has always been taking a gradual, mutually beneficial and open approach in developing its capital market, and the approval is a voluntary opening-up initiative on the Chinese side, an unnamed senior official with the CSRC said.

The establishment of representative offices by overseas bourses will help perfect the basic systems of the nation's capital market by offering us an insight into the securities markets and money-raising channels in foreign countries, the official stated.

The CSRC added that several other major foreign bourses have also filed applications for establishing offices in China.