China tightens scrutiny of offshore listings in certain sectors


"The Asia-Pacific region cannot and should not relapse into the confrontation and division of the Cold War era," Xi said.

SHANGHAI: The Chinese government will now require that domestic firms in certain sectors receive clearance from regulators before they can list outside mainland China.

Currently, many Chinese companies use a so-called variable interest entity (VIE) structure to float overseas, skirting foreign investment restrictions in sectors such as media and education.

The National Development & Reform Commission (NDRC) also said on Monday that foreign stakes in such companies must be capped and foreign capital must not be involved in the operation and management of such companies.

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