Anthony Neoh, the top adviser for the China Securities Regulatory Commission, said that the mainland stock market could lead in foreign investment which was proposed by Qualified Financial Institutional Investor (QFII) with reference to the Taiwan system.

The cap for foreign investment has been set at US$1.2 billion (approximately HK$9.4 billion).

The major obstacle for A shares market to lead in foreign investment is the RMB currency rate monitoring issue.

He suggested that the central bank monitor currency flow.

He believed that A/B shares would be merged in due course.