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China eases stock rules

CHINA has relaxed rules to allow more foreign participation in its main stock market in the latest step towards liberalising the financial system in the world's second-biggest economy.

From yesterday, foreign investors on the Shanghai stock exchange were allowed to invest in more products and invest up to 30pc in a single company, up from 20pc previously.

The move comes only days after the People's Bank of China doubled the daily trading band of its currency, and after it had provided an explicit time frame for the liberalisation of its deposit rates.

China's stock markets showed muted reaction to the latest change, but analysts said it highlighted the overall direction of the reforms.