Beijing strengthens oversight of Chinese companies’ international listings





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SHANGHAI (Reuters) – China will now require Chinese companies in certain sectors to get the green light from authorities before they can go public abroad.

Currently, many Chinese companies are using the Variable Rights Entity Structure (VIE) to list overseas, thereby bypassing Beijing’s restrictions on international investments that affect industries such as media. and education.

The National Development and Reform Commission (CNDR) also banned on Monday that foreign capital participate in the management of these companies and capped the participation of foreign entities.

The CNDR’s statement comes a few days after the publication by the Chinese stock market regulator of a draft rules requiring companies wishing to go public internationally to file documents to ensure that they comply with the Chinese regulations.

(Report from the Beijing and Shanghai offices, Blandine Hénault for the French version, edited by Jean-Stéphane Brosse)









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