Beijing has tightened the rules on overseas listings by Chinese firms in a series of new regulations that increase scrutiny of companies seeking to raise funds on foreign stock markets.
China has stepped up scrutiny of major overseas listings after a controversial New York initial public offering (IPO) by ride-hailing giant Didi Chuxing (滴滴出行) went ahead this year, despite regulatory concerns at home.
In the latest measure to increase oversight, Chinese authorities on Monday said that companies in industries where foreign investment is banned — due to a “negative list” — would have to seek approval from authorities for an overseas debut.
Overseas investors’ total ownership would be capped at 30 percent, while a single investor should hold no more than 10 percent, according to the updated list of restrictions on foreign ownership, which takes effect from next month.
Foreign investors are “not allowed to participate in the operations and management” of the company, a joint statement by the Chinese Ministry of Commerce and the National Development and Reform Commission said.
It came days after authorities proposed that companies seeking foreign IPOs would need to register with the securities regulator.
The listing would be blocked if it was considered a threat to national security.
Some of China’s biggest firms have listed on US stock markets in search of more developed markets and fresh lines of cash from a massive investor base, but enthusiasm has wavered amid soaring tensions between Beijing and Washington.
Beijing has also launched a wide-ranging regulatory crackdown over the past year to curb runaway growth in China’s powerful Internet sector and rein in the influence of big businesses.
In the wake of Didi’s New York listing, authorities shocked investors by launching investigations into the company over cybersecurity — before they ordered it be removed from app stores, and extended probes into other US-listed Chinese companies.
This month, Didi said that it would delist from the New York Stock Exchange, shortly after US regulators adopted a rule that would allow them to remove foreign firms.
The Chinese government has been encouraging companies to list on domestic exchanges, to keep information and data from heading overseas and to develop the country’s capital markets.
The latest regulatory moves stop short of a ban on offshore structures known as variable interest entities (VIE) — structures which allowed tech giants such as Alibaba Group Holding Ltd (阿里巴巴) and Tencent Holdings Ltd (騰訊) to avoid restrictions on foreign investment and listings abroad.
The restrictions would make VIE structures “less attractive,” as well as “making foreign listings less appealing for Chinese founders and investors,” University of Hong Kong law professor Angela Zhang (張湖月) said.
The rule would not affect companies listed overseas.
Regulators had suggested that companies with at least 1 million users undergo a cybersecurity review before going public abroad.
European Central Bank (ECB) President Christine Lagarde is expected to step down from her role before her eight-year term ends in October next year, the Financial Times reported. Lagarde wants to leave before the French presidential election in April next year, which would allow French President Emmanuel Macron and German Chancellor Friedrich Merz to find her replacement together, the report said, citing an unidentified person familiar with her thoughts on the matter. It is not clear yet when she might exit, the report said. “President Lagarde is totally focused on her mission and has not taken any decision regarding the end of
French President Emmanuel Macron told a global artificial intelligence (AI) summit in India yesterday he was determined to ensure safe oversight of the fast-evolving technology. The EU has led the way for global regulation with its Artificial Intelligence Act, which was adopted in 2024 and is coming into force in phases. “We are determined to continue to shape the rules of the game... with our allies such as India,” Macron said in New Delhi. “Europe is not blindly focused on regulation — Europe is a space for innovation and investment, but it is a safe space.” The AI Impact Summit is the fourth
CONFUSION: Taiwan, Japan and other big exporters are cautiously monitoring the situation, while analysts said more Trump responses ate likely after his loss in court US trading partners in Asia started weighing fresh uncertainties yesterday after President Donald Trump vowed to impose a new tariff on imports, hours after the Supreme Court struck down many of the sweeping levies he used to launch a global trade war. The court’s ruling invalidated a number of tariffs that the Trump administration had imposed on Asian export powerhouses from China and South Korea to Japan and Taiwan, the world’s largest chip maker and a key player in tech supply chains. Within hours, Trump said he would impose a new 10 percent duty on US imports from all countries starting on
STRATEGIC ALLIANCE: The initiative is aimed at protecting semiconductor supply chain resilience to reduce dependence on China-dominated manufacturing hubs India yesterday joined a US-led initiative to strengthen technology cooperation among strategic allies in a move that underscores the nations’ warming ties after a brief strain over New Delhi’s unabated purchase of discounted Russian oil. The decision aligns India closely with Washington’s efforts to build secure supply chains for semiconductors, advanced manufacturing and critical technologies at a time when geopolitical competition with China is intensifying. It also signals a reset in relations following friction over energy trade and tariffs. Nations that have joined the Pax Silica framework include Japan, South Korea, the UK and Israel. “Pax Silica will be a group of nations
RSS