China targets offshore IPO structure, to require ministry approval -sources
Reuters, 09 July 2021
China’s securities regulator is setting up a team to review plans by Chinese companies for initial public offerings (IPOs) abroad, sources with knowledge of the matter said, including those using a corporate structure which Beijing says has led to abuse.
Chinese companies looking to list offshore will also need approval from the relevant ministry, the sources told Reuters, in a break from a decades-old arrangement that did not require them to seek a formal go-ahead from any authorities in China.
The details are the first to emerge after Beijing said on Tuesday it plans to strengthen supervision of all Chinese firms listed offshore, a sweeping regulatory shift that triggered a sell-off in U.S.-listed Chinese stocks. read more
That announcement came after Chinese regulators launched a cybersecurity investigation into ride-hailing giant Didi Global Inc (DIDI.N) just days after its U.S. stock market listing.
