China tightens rules on overseas listingsHEIGHTENED SCRUTINY: Authorities said that firms in industries in which foreign investment is banned would need approval from authorities for an overseas debutAFP, BEIJINGBeijing 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. It came days after authorities proposed that companies seeking foreign IPOs would need to register with the securities regulator. 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.

Source: Taipei Times December 28, 2021 16:39 UTC