Financial system1 hour within the past (Dec 27, 2021 03: 55AM ET)
© Reuters. FILE PHOTO: A China yuan conceal is seen in this illustration impart Might perchance perchance 31, 2017. REUTERS/Thomas White/Illustration
SHANGHAI (Reuters) -The Chinese authorities will now require that domestic companies in certain sectors procure clearance from regulators ahead of they are able to checklist outdoor mainland China.
At the moment, many Chinese companies impart a so-called variable hobby entity (VIE) structure to circulate in a foreign nation, skirting foreign funding restrictions in sectors comparable to media and education.
The National Vogue & Reform Commission (NDRC) moreover acknowledged on Monday that foreign stakes in such companies must aloof be capped and foreign capital mustn’t be concerned on the operation and administration of such companies.
The NDRC assertion comes correct days after China’s securities regulator printed draft rules requiring filings by companies trying to procure offshore listings to be certain they follow Chinese criminal pointers and regulations.
Under the brand new filing machine, VIE-structured companies will aloof be allowed to checklist as prolonged as they’re compliant.
“The NDRC assertion goes hand in hand with the filing machine,” acknowledged Zhan Kai, a attorney at East & Harmony Partners.
Disclaimer: Fusion Media would cherish to remind you that the records contained in this web feature is now not necessarily staunch-time nor correct. All CFDs (shares, indexes, futures) and Forex costs aren’t supplied by exchanges nonetheless moderately by market makers, and so costs would possibly perchance maybe moreover now not be correct and will fluctuate from the particular market value, meaning costs are indicative and now not acceptable for trading capabilities. Therefore Fusion Media doesn`t endure any responsibility for any trading losses it’s likely you’ll moreover incur due to using this info.
Fusion Media or any individual fervent with Fusion Media will now not settle for any liability for loss or break due to reliance on the records in conjunction with records, quotes, charts and buy/promote indicators contained internal this web feature. Please be absolutely told relating to the hazards and expenses linked to trading the financial markets, it’s one of many riskiest funding forms imaginable.