China relaxes regulations on foreign investment in publicly traded companies
China has introduced new regulations aimed at promoting foreign long-term investments in publicly listed companies.
TroibNews 
Chinese authorities announced revised regulations on Friday regarding foreign investors' strategic investments in listed companies, aimed at promoting long-term, value-focused investments in the country.
These updated rules were issued by six governmental departments, including the Ministry of Commerce and the China Securities Regulatory Commission. A significant change is the allowance for foreign natural persons to engage in strategic investments in listed companies, whereas previously, such investments were restricted to foreign juridical entities and organizations.
Under the new regulations, the capital requirement has been decreased for foreign investors who do not obtain controlling stakes in listed firms. They will now need to have at least $50 million in total actual assets or a minimum of $300 million in total managed actual assets.
Additionally, the new rules introduce tender offers as an option for making strategic investments, which were not available before. Previously, investors could only utilize private placements and share transfer agreements.
Foreign investors looking to invest through private placements or tender offers may use shares from non-listed overseas companies as consideration shares for acquisition payments.
The revised rules also relax requirements concerning the shareholding ratio and lock-up period. Specifically, the shareholding ratio requirement has been removed for investments made through private placements, while the ratio for tender offers and share transfer agreements has been reduced from 10 percent to 5 percent.
To further incentivize medium- and long-term investments, the new regulations stipulate that the lock-up period for acquired shares should be at least 12 months, a substantial decrease from the previous requirement of "no shorter than three years."
Mathilde Moreau contributed to this report for TROIB News
These updated rules were issued by six governmental departments, including the Ministry of Commerce and the China Securities Regulatory Commission. A significant change is the allowance for foreign natural persons to engage in strategic investments in listed companies, whereas previously, such investments were restricted to foreign juridical entities and organizations.
Under the new regulations, the capital requirement has been decreased for foreign investors who do not obtain controlling stakes in listed firms. They will now need to have at least $50 million in total actual assets or a minimum of $300 million in total managed actual assets.
Additionally, the new rules introduce tender offers as an option for making strategic investments, which were not available before. Previously, investors could only utilize private placements and share transfer agreements.
Foreign investors looking to invest through private placements or tender offers may use shares from non-listed overseas companies as consideration shares for acquisition payments.
The revised rules also relax requirements concerning the shareholding ratio and lock-up period. Specifically, the shareholding ratio requirement has been removed for investments made through private placements, while the ratio for tender offers and share transfer agreements has been reduced from 10 percent to 5 percent.
To further incentivize medium- and long-term investments, the new regulations stipulate that the lock-up period for acquired shares should be at least 12 months, a substantial decrease from the previous requirement of "no shorter than three years."
Mathilde Moreau contributed to this report for TROIB News
