Caixin
Nov 04, 2024 07:21 PM
FINANCE

China Loosens Rules on Foreign Strategic Investment in Listed Firms

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An update to China’s regulations governing strategic investments aims to guide more high-quality foreign capital to invest in listed companies. Photo: AI generated
An update to China’s regulations governing strategic investments aims to guide more high-quality foreign capital to invest in listed companies. Photo: AI generated

China is making it easier for foreign investors to directly acquire long-term stakes in Chinese mainland-listed companies, in the nation’s latest bid to revive sluggish foreign investment.

An update to the regulations governing strategic investments was released Friday by six agencies, including the Ministry of Commerce and the securities regulator.

The update lowered the requirements for investments, aiming to guide more high-quality foreign capital to invest in listed companies, according to a Q&A accompanying the updated regulations, which are effective from Dec. 2.

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  • China simplified regulations for foreign investors to promote more long-term investments in mainland-listed companies, effective December 2.
  • The updates lower minimum share acquisition thresholds and asset requirements, relax share-selling timeframes, and allow broader payment methods.
  • Foreign individuals can now invest directly, and strategic investments can include takeover bids, aiming to counteract economic slowdown and geopolitical challenges.
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What Happened When
November 1, 2024:
An update to the regulations governing strategic investments was released by six agencies, including the Ministry of Commerce and the securities regulator.
AI generated, for reference only
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