China to ease rules for foreign strategic investment in listed firms

China's Ministry of Commerce (MOFCOM) on Thursday released a revised draft on foreign strategic investments in Chinese listed firms, seeking to ease thresholds and restrictions to attract more investment to the market.

The revision lowered asset requirements for investments, stipulating that foreign investors should either own at least 50 million U.S. dollars or manage no less than 300 million U.S. dollars of assets for market entry.

Under current rules, the thresholds were set at 100 million and 500 million U.S. dollars, respectively.

The revised draft also reduced the lock-up period for foreign shareholders' stocks from three years to 12 months and removed shareholding limits of foreign strategic investment through listed firms' targeted placements.

Other changes included lowering shareholding limits of investments through agreed transfers to five percent from 10 percent and expanding investment channels.

The revision is part of government efforts to support the active participation of foreign investment in China's financial market. The public is welcome to make suggestions on the draft revision before July 19, 2020, according to the MOFCOM.

Source(s): Xinhua News Agency