China proposes tighter rules but no ban for offshore listings

Beijing [China], December 25 (ANI): China's regulatory body has unveiled a draft of new rules for domestic firms to raise funds overseas, allowing them to do so after registering with the regulator.
This move is among the latest regulatory steps taken by China this year to tighten its grip on Chinese companies. This year has also seen a crackdown on capital, private businesses and the entertainment industry.
"Domestic companies that seek to offer and list securities in overseas markets shall fulfil the filing procedure with the securities regulatory agency under the State Council and report relevant information," the draft provisions by the China Securities Regulatory Commission (CSRC) read.
The CSRC published the draft regulation online in order to collect public opinion until January 23, Russian news agency Sputnik reported.
"The new rules aim to promote better compliance and development. We welcome valuable public comments for our further improvement of these two drafts. The rules will be implemented timely after the completion of consultation and due legislative procedures," CSRC said.
Earlier this year, China's cyberspace regulator had opened a probe into local ride-hailing company DiDi in the wake of it launching an initial public offering in the United States. Later in December, the company announced it would delist from the New York Stock Exchange.
Beijing is also evolving and increasing means to monitor, exert influence over, and intervene in corporate affairs. China's government is simultaneously becoming an increasingly active investor in nonstate firms and mobilizing broad segments of the nonstate economy to contribute to its technology ambitions, according to media reports.
Experts believe that Chinese authorities are also using their internal anti-corruption investigations to gather information on and punish corporate malfeasance, in place of China's weak regulatory apparatus.
According to CNN, Chinese regulators have moved aggressively to restrict what they see as overly powerful companies, especially in Big Tech. (ANI)