The Shanghai Stock Exchange, one of the only two bourses in China's mainland, announced Wednesday that foreign dealers in B-shares will be allowed to apply for seats and trade directly at the stock exchange.

In opening the Chinese stock market wider to overseas investors, the Shanghai exchange is implementing China's promise to the World Trade Organization upon its entry last year.

The bourse recently published an interim regulation to guide overseas securities dealers who participate in the trading of B-shares specially designed for overseas investors.

In the past, foreign securities traders have taken part in B-share trading through local agencies.

The Shanghai bourse also said Wednesday that it had issued other provisional regulations on applications for special membership by foreign dealers.

Foreign special members have the right to attend conferences of the bourse as non-voting members, make proposals to the exchange authorities, and enjoy relevant services by the exchange.

Recently, China has stepped up its efforts to attract more overseas investors to the capital market and issued a number of regulations to this end.

(People's Daily July 25, 2002)