Complexity of legal structure may be hindering international board launch

There are still legal hurdles to be overcome before cross-border products can be listed and traded on the long-awaited international board of the Shanghai Stock Exchange (SSE), say counsel.

Although authorities have yet to issue official listing rules for the international board, there are reports of bourse officials speaking again of the board launching in 2011. The inauguration of the new platform will be marked by the formal release of the rules.

Shanghai-based Chen & Co partner Zhong Lin says that “coordination” is the core problem of the legal structure of the international board. There are differences between China and other jurisdictions in legal areas such as company law, securities law, foreign exchange regime and accounting standards.