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China securities regulator says VIE compliant companies can list overseas -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO : Wall Street is crowded with people, just outside of the New York Stock Exchange (NYSE), in New York City, U.S.A, on March 19, 2021. REUTERS/Brendan McDermid/File Photo

BEIJING, (Reuters) – China’s Securities Regulator said Friday that domestic entities with variable interest entity structures (VIEs) can register with regulators to list abroad, as long as they comply with compliance.

China Securities Regulatory Commission (CSRC), in a draft rule published online, stated that it will establish a coordination mechanism to regulate overseas listings of domestic companies.

Companies listed in China on international stock markets (mainly the United States) use VIEs to bypass the restrictions placed by the United States that prohibit overseas investment in sensitive sectors such as media or telecommunications.

China Securities Regulatory Commission, (CSRC), stated that it is improving overseas listing regulation and not tightening policies.

This news was made as the U.S. market closed Friday due to Christmas holidays.

Beijing is looking at ways to increase oversight of Chinese listed companies overseas, following the $4.4 billion Initial Public Offering (IPO) by Didi Global Inc.

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