Chinese authorities have issued revised rules on strategic investment for foreign investors in listed companies, in a move to encourage them to make valuable and long-term investments in the country.
The revised regulations, issued by six government departments – including the Ministry of Commerce and the China Securities Regulatory Commission – allow foreign natural persons to make strategic investments in listed companies , after investment was previously limited to foreign legal persons or foreign entities only, according to Xinhua. » Chinese officer.
The new regulations also reduced capital requirements for foreign investors as well as controlling shareholders in listed companies, so that the minimum required capital would be $50 million of total real assets, or $300 million of actual assets under management.
The new rules add to the offering offering an additional option to make strategic investments, after being limited to private placements and share transfer agreements.
For foreign investors who intend to invest through private placement options or tender offers, they will be allowed to use shares of unregistered foreign companies as payment for the acquisition.
The new rules also eased ownership percentage requirements and the ban period. The ownership percentage requirement for investors investing through private placement has been abolished, and the ownership percentage required in tender offers and share transfer agreements has been reduced to 5 percent instead of 10 percent.
To encourage medium and long-term investments, the new regulations set a lock-up period of no less than 12 months on shares acquired, compared to a minimum of 3 years previously.
Meanwhile, a spokesman for the Legislative Affairs Committee of the National People’s Congress said on Friday that China aims to control government debt and plans to revise the law to do so.
“The changes proposed by the Standing Committee of the National People’s Congress will require reports, submitted annually, on the work of debt management by the Council of Ministers and local governments,” said Huang Haihua, spokesperson for the Standing Committee. The National People’s Congress of China, to reporters.
Huang explained that the committee should “monitor the government’s debt and establish a strong reporting system to manage this debt.” He said that the draft amendments are expected to be discussed when the Standing Committee meets from the fourth to the eighth of November, with the aim of expanding its supervisory authority in relation to the management of the government’s debt, as well as financial and economic work .
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2024-11-02 14:39:00
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