Beijing assures Chinese firms it remains ‘open’ and ‘supportive’ of public listing overseas

Chinese companies can expect no significant policy change in overseas listing procedures, according to a commentary by Xinhua

Dozens of firms are currently evaluating their plans to list in the US amid China’s announcement of data security reviews

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Traders are seen at work during the initial public offering of Chinese ride-hailing company Didi Global on the New York Stock Exchange floor on June 30, 2021. Photo: Reuters

Published: 9:00pm, 29 Jul 2021Updated: 12:19pm, 5 Aug 2021

Beijing has assured Chinese companies that the government remains open to and supportive of public listing overseas, according to a commentary by the official Xinhua News Agency on Wednesday, as authorities move to ease fears of rattled investors amid a broad crackdown on the country’s technology sector.

“Some recent regulatory policy changes are related to overseas listing,” read the commentary, which acknowledged concerns in the market about uncertainties in China’s position on such public offerings.

It cited a speech delivered in June by China Securities Regulatory Commission (CSRC) chairman Yi Huiman, who said the country’s securities body is open to initiatives by Chinese companies to list overseas.

The CSRC “supports enterprises to make their own choices in view of their own circumstances and to use the resources available in [both domestic and foreign] markets in a law-abiding manner”, the Xinhua commentary said.

It marks the latest sign that Chinese authorities have become uncomfortable with a sell-off that sent the country’s key stock indexes to the brink of a bear market on Wednesday morning. State-run media has published a series of articles suggesting that the rout was overdone.

Didi Chuxing, operator of China’s dominant ride-hailing app, has been put under the country’s first-ever cybersecurity review after raising US$4.4 billion from its public listing in New York. Photo: EPA-EFE

It also ratchets up Beijing’s effort to clear up plans to tighten procedures on Chinese firms going public overseas.

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