Shanghai considers allowing multinationals to list

The Shanghai Stock Exchange (SSE) is redoubling efforts to allow multinational companies to list, a move which could threaten Hong Kong's status as a gateway to the mainland for foreign firms, the South China Morning Post reported. SSE assistant general manager Que Bo said market research toward a listing plan is currently underway. Que did not give details of the plan, but did mention Coca-Cola, HSBC and Siemens as examples of companies Shanghai is looking to attract. Experts called the threat to Hong Kong's business "inevitable," but said the impact will be limited due to the lack of full convertibility of China's currency and limits on foreign trading of mainland stocks. The Shanghai Exchange's action is expected to solve the problem of rapid investment and excess liquidity chasing too few stocks, Que said.