The attractiveness of the JSE for foreign companies received a significant boost yesterday, with an announcement by the Treasury that local investors would now be able to trade in foreign-domiciled companies.
In terms of the announcement, made by Finance Minister Pravin Gordhan in his medium-term budget policy statement in Parliament yesterday, inward-listed companies would be treated as domestic assets for these investors rather than as foreign holdings.
The step is expected to enhance the status of the local exchange as a springboard for foreign companies to expand into Africa, and will also mean institutional investors such as retirement funds, collective investment schemes, investment managers and long-term insurers would be able to invest more offshore. [Businessday]
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