14 Aug 2019
Foreigners employed by regional headquarters of multinational companies in Shanghai are set to start to be given the option to buy stocks listed on the A-share market. Amid the protests in Hong Kong, Shanghai is looking to become a global financial powerhouse.
The State Administration of Foreign Exchange has partnered up with the Shanghai municipal government in order to make this option possible. With the release of the stock option guidelines, Shanghai hopes to attract foreign investors and regional headquarters to set up their basis in the city. However, it has not been confirmed when this possibility will be made available for the foreign investors. Traders will have the choice to buy or sell A-shares as agreed between the two parties. They will also be part of the employees’ pay packages.
Hong Kong protests and the ongoing trade war dispute between China and the U.S. have slowed down the economy, highlighted in the first half of 2019 where a 5.9% economic output was produced.
Such an option would help boost the country’s economy. Earlier efforts were done as Tesla set up a plant in Lingang. The electric vehicle producer is expected to continue helping the economy as people are understanding the need and benefits of EVs.