In April 2008, MOFCOM issued a notice guiding foreign investment, clearly stating that qualified foreign-invested companies were encouraged to list in the domestic stock markets. The notice has greatly boosted foreign-invested companies' interest in acquiring IPOs in the mainland. Chen Jian said there are virtually no blocks preventing foreign-invested companies from being listed.

IPO: On Again, Off Again

China opened Shanghai and Shenzhen stock markets in 1990 and 1992, respectively. Since then, initial public offerings (IPOs) have been suspended and resumed six times.

- On July 21, 1994, China halted IPOs for five months and restarted on December 8.

During the five months, benchmark Shanghai Composite Index (SCI) rose to 1,052.94 points in September from 325.89 points in July, but fell to around 650 points when the IPOs reopened.

- On January 19, 1995, IPOs were again suspended and later resumed on June 9. During the five months, SCI again soared to 926.41 points in May from a low 524.43 points, but fell back after news of an IPO resumption was released.

- On July 5, 1995, the China Securities Regulatory Commission (CSRC) stopped IPOs in the stock markets, reopening the gate for IPOs on January 3, 1996. During the six-month hiatus, the stock markets gained marginally but plunged shortly thereafter. In early January 1996, the SCI remained stable around 500 points, but after IPOs were resumed, the stock markets took off on a bull run, with the SCI soaring to 1,258.69 points by the end of 2006.

- On August 26, 2004, the CSRC stalled IPOs for the fourth time, resuming the trade on January 23, 2005. The SCI proceeded on a downward spiral despite occasional up-swings.

- On May 25, 2005, IPOs were stopped and restarted on June 2, 2006, the longest suspension since the stock markets were initiated in 1992.

During the one-year period, the SCI climbed significantly, signaling the era of a new bull market.

After resumption of IPOs, the SCI rose above 6,000 points, a record high, in 2007.

- On September 24, 2008, IPOs were suspended for the sixth time and were resumed on June 18, 2009. During the nine-month period, the domestic stock markets nose-dived with the SCI falling to as low as 1,600 points against the backdrop of the global financial crisis. The massive 4-trillion-yuan ($586 billion) stimulus package adopted by the Chinese Government in November 2008 led to a significant rise in the stock markets. The SCI continued to grow after IPOs were reintroduced in June 2009.