Are the authorities taking steps to increase foreign investment and competition?
Regulators will soon approve domestic listings of foreign-invested companies, which will force wholly domestically owned companies to seek competitive advantage through transparency and profitability. Though, a late 2001 order requiring all listed companies to submit to audits by foreign accounting firms has been withdrawn, the clear implication is that domestic companies need to shape up or close shop. Opening the sector to foreign entrants is a tool for, not the motivation behind, financial sector reform.
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