Caixin Explains: What China’s New Investment Rules Mean for Foreign Investors

Chinese companies engaged in businesses that are barred from foreign investment can now file for offshore share sales as long as they win regulatory approval and cap foreign ownership, authorities said Monday.

The new rule on foreign investment is among updates to the government’s policies related to 31 restricted sectors that take effect Jan. 1. Beijing clarified the rules Monday, a move expected to plug a loophole that has long been used by Chinese businesses to skirt restrictions on overseas share sales.