The China Securities Regulatory Commission (CSRC) lifted the regulatory threshold for “backdoor listings” in China, an often-abused form of asset restructuring in which a company acquires a listed firm and uses it as a “shell” to raise funds on stock exchanges, Dow Jones reported. State media said the new requirements for backdoor listings are nearly comparable with that of initial public offerings. According to a CSRC statement released Saturday, a company intending to be acquired must have been operating for at least three years. In addition, the business must also have been profitable in its last two fiscal years, with total net profit exceeding RMB20 million (US$3.1 million) in that period. Backdoor listings (also called “reverse mergers” or “reverse takeovers”) by Chinese firms in the US have been plagued by accusations of fraud.