China Set to Open Stock Market to Foreigners

China is expected to allow foreign investors to trade in the country's stock index futures market by the end of January, according to a recent article in the Wall Street Journal. While the market will initially be open to only a small batch of carefully selected long-term investors, the move is seen as the last step in fully opening the country's markets to foreign investors.

China's stock market fell 22% in 2011 and has lost 1.7% so far this year, as new companies list and the domestic economy slows. Opening up the market to a wider investor base could help support these new listings and stabilize the market.