It has been spoken about this for a long time, but not much has happened on the ground. It seems now, however, that the framework and legal regulation for western companies being listed on the Shanghai Stock Exchange are in place. As soon as the market conditions are improving it could therefore be implemented quickly. What remains to be seen is how soon the current market situation improves!
As a foreigner you could not expect to be investing as China capital controls ban foreign investors from trading in China’s markets. This means that that the shares only can be traded by people living in China. For large companies that also are listed at one or more western stock exchanges a listing in China could be a very useful way of getting equity in the future as well as raising their profile in China.
For smaller companies it is probably a longer way to go. A number of Chinese companies have been listed at London Stock Exchange AIM market. But it is not likely that a stream of smaller western companies will go to China any time soon. Particularly for smaller companies with links to China it could be of interest with a listing there.