Details of a new draft regulation unveiled Thursday set out the requirements state-owned firms listed overseas have to meet before they can issue A-shares in China, the South China Morning Post reported. The China Securities Regulatory Commission would limit the issue of A-shares to firms with a minimum net profit of US$130 million. Companies that have traded for less than three years would be exempt from the profit requirement. Beijing may be eager for more of these large companies to list in China to soak up some of the excess liquidity in the market. Current A-share regulations apply only to domestically incorporated companies. "It is a positive move for the A-share market as those best-quality companies will help increase the overall quality of the [market]," said Jing Ulrich, chair of China equities at JP Morgan. "It will attract a lot of red-chip firms since the A-share listing will bring good publicity."