Jan. 15, 2007 (China Knowledge) – Institutional investors held 40% of all shares traded in China as of last week. Tu Guangshao, vice chairman of the China Securities Regulatory Commission, said on Saturday that this trend is pleasing, and that foreign investors will play an increasingly important role in China's stock market.

The government will allow the nation's fund managers, social security funds, insurance firms and select overseas investors to increase their holdings, according to a report by Xinhua news agency on Dec. 3.

Since the A-share market opened to foreign investors in 2003 under the qualified foreign institutional investor (QFII) program, the government has approved US$9 billion worth of investment from abroad.