A Chinese investor looks at a screen displaying the Shanghai Composite Index at a stock brokerage house in Fuyang city, Anhui province. Photo: AFP
The new rule stipulates that domestic listed companies and their foreign employees can directly handle business such as cross-border payment and fund transfer at banks with a registration certificate without applying for prior approval. Photo: AFP

China’s stock markets are booming this year on the back of mainland investors, and there are signs international buyers will join the party, reports Bloomberg.

Recently, overseas funds have been skeptical of mainland markets, pulling US$2 billion from exchange traded funds, says Mark Tinker, head of Axa Framlington in Hong Kong. But he adds that stability and strong corporate fundamentals should restore confidence.

Still, many will probably wait for a healthy selloff. Money manager at Mathews Asia in San Francisco, Sherwood Zhang, reminds us that “[v]olatility is rarely absent from the Chinese stock market.”