Shanghai int'l board stalled on debate over convertibility -report

SHANGHAI, July 15 (Reuters) - Chinese regulators have resumed debates over the design of a planned international board in Shanghai, stalling the launch of the long-awaited plan to allow foreign companies to sell shares on the mainland, a Chinese financial magazine reported on Friday, citing regulatory sources it did not identify.

The glitch came as the State Administration of Foreign Exchange (SAFE), the country's forex regulator, was concerned that the international board, shares on which are expected to be quoted in yuan, might go against the country's goal of gradually opening up its capital account, the online version of Caixin said.

The China Securities Regulatory Commission (CSRC) had previously said that shares traded on the international board would be quoted in yuan, the Chinese currency, Caixin said.

Shang Fulin, chairman of the CSRC, said in May that the launch of the international board was "coming closer" to the market.

However, officials at SAFE recently "argued that limiting board trading to yuan would clash with a government plan to phase in capital account convertibility," Caixin said.

This had pushed the international board project "back to square one," the magazine said, citing one of the sources.

Many multinationals, including HSBC Holdings , Standard Chartered , Unilever and Coca-Cola Co , have already expressed interest in a listing on the international board. (Reporting by Soo Ai Peng; Editing by Jason Subler)