Reuters is reporting here that Nasdaq is in talks with the China Securities Regulatory Commission (China’s version of the SEC) to set up an office in Beijing. According to the article, the NYSE is also pursuing a Chinese office, the obvious goal being to secure listings from Chinese companies. Nasdaq has signed memorandums of understanding with the governments of two Chinese provinces to obtain listings and an additional MOU with the Shanghai Stock Exchange, the contents of which have not been disclosed.
Beijing has recently drafted rules to allow foreign stock exchanges to establish offices in China, but at the same time several reports have indicated that China wants to start its own Nasdaq-style exchange. Commentators predict China, followed by India, will inspire the fiercest competition for listings among numerous overseas exchanges including markets in Germany, Hong Kong, and South Korea.
