The China Securities Regulatory Commission (CSRC) issued new regulations which bar mainland firms from spinning off operations which contribute more than 50% of total net profits in the most recent fiscal year. Analysts said that the policy is aimed at blocking mainland firms from listing their key assets on overseas stock markets. Mainland-listed firms will also be regulated in the following ways: They will not be allowed overseas listings for subsidiaries which make up more than 30% of their net assets. They will be required to be profitable for three consecutive years before being allowed to list a subsidiary overseas. They will be barred from injecting funds raised in the previous three years into subsidiaries planning to list overseas. Companies with units listed on both mainland and overseas markets will not be allowed to compete with each other or to share managers and must maintain separate financial structures. All overseas listings of mainland-listed firms must be approved by board and shareholders.