The China Securities Regulatory Commission (CSRC) published new rules today that remove restrictions on Chinese companies seeking IPO listings overseas. The move indicates China's desire to increase corporate fundraising avenues as the nation seeks to revive its economy.
The new CSRC guidelines are intended to streamline listing requirements while improving registration and vetting procedures.
- One of the most significant developments is the removal of a strict IPO scrutiny process and limits on the issue price and share size.
- The securities watchdog's role has been curbed to ensure listings are in line with national industrial policy.
- Stock exchanges are now responsible for examining the information disclosures.
- Firms are still required to register with the CSRC after a transition period post-overseas listing.
- CSRC came out in support of variable interest entity structures — which allow foreign investors to own shares in offshore entities where the Chinese company can transfer profits — as long as they are compliant with regulations.
