Letting enterprises list overseas will stimulate market vitality

The China Securities Regulatory Commission recently released new regulations for the filing-based management of Chinese companies' overseas securities offering and listing.

The new rules indicate China's commitment to expanding the opening-up of its capital market and supporting domestic enterprises to make good use of both domestic and international markets.

According to the new regulations, effective from March 31, there will be a unified filing-based management for Chinese companies' direct and indirect overseas offering and listing activities, and a coordination mechanism will be established to improve cross-border regulatory cooperation. The regulations are aimed at improving policy transparency, standardization and facilitation, giving better play to the rule of law in stabilizing expectations and benefiting long-term development, and further improving the regulatory environment to stimulate market vitality and enhance confidence.

Through it the country will further improve the negative list system, clarify under what circumstances overseas IPOs and listing are not allowed, and no longer set additional thresholds and conditions for overseas listing.

The filing-based management is more focused on rules compliance and more streamlined in procedures. The country will adhere to law-based, scientific and appropriate supervision and reduce extensive regulation. It will consolidate the responsibilities of issuers and intermediaries and maintain "zero tolerance" for cross-border illegal acts. At the same time, communication and cooperation with overseas regulators will be strengthened to severely crack down on fraudulent issuance and financial fraud.

Under the new regulations, relevant procedure requirements will be detailed and filing requirements will be set differently to reduce the filing burden on enterprises. The CSRC will also strengthen communication and coordination with relevant departments, and continue to improve regulatory standards and requirements.

China will not stop expanding its capital market openness, and Chinese enterprises' decision to choose whichever market to go to for listing will be respected. The overseas listing of domestic enterprises means their further integration in the international market. China's economy has been deeply integrated with the world economy, and its high-quality development can only be warranted by promoting the docking of high-quality industries and factor resources at home and abroad.