China’s regulators have unblocked the path for companies to list overseas, reopening the avenue of fundraising after a 20-month obstruction to enable businesses to recapitalise for growth in the post-COVID period, reports the South China Morning Post.
With effect from March 31, the China Securities Regulatory Commission (CSRC) will have the mandate to vet applications for offshore listings, including in Hong Kong and the United States, according to a statement released late Friday night.
Listing applicants must abide by the rules of industry regulators such as the Cyberspace Administration of China (CAC) in their disclosures of customers’ data and anything that could be construed as state secret. The CSRC will block listings that may impede state security, or those that involve companies or shareholders that have committed corruption, bribes or are under investigation.