China publishes rules to revive offshore listings

China’s securities watchdog published rules on Friday to regulate offshore listings, reviving foreign initial public offerings (IPOs) by Chinese firms after a regulatory freeze imposed in July 2021.

The trial rules, published by the China Securities Regulatory Commission (CSRC) and effective from March 31, are designed to guide companies wanting to access liquid capital markets.

That includes in the United States after Beijing and Washington solved a long-standing audit dispute in December, lessening the risk of US delisting for Chinese companies, reported Reuters.

“Offshore listing is a key component of China’s capital markets opening,” the CSRC said in a statement.

It said the rules showed China was pursuing “its direction of opening up” in spite of growing uncertainty in the world and that companies will be able to choose listing venues freely as long as they abide by the law.

Under its new filing system, which effectively ends decades of unregulated overseas IPOs by Chinese companies, the CSRC will vet offshore listings.