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Beijing promises to speed up implementation of new IPO rules overseas

What’s new: China’s top securities regulator will accelerate efforts to enact new rules for overseas IPOs, according to an official release on Saturday.

The China Securities Regulatory Commission (CSRC) will keep the channel open for overseas listings, CSRC chairman Yi Huiman said in a speech to a business group on the same day, according to the press release.

This reiterates the Commission’s pledge made on March 16 following a meeting of the country’s top fiscal committee aimed at allaying market concerns amid massive sell-offs in Chinese equities at home and abroad.

The background: One of the concerns was whether Beijing would support listing Chinese companies in the US

Those fears stem from the $4.4 billion IPO of Didi Global Inc. on the New York Stock Exchange last year. Within days of its debut on June 30, the Chinese ride-hailing giant faced a devastating backlash from domestic internet regulators, forcing it to undergo a cybersecurity audit, removing its apps from app stores and suspending new user registrations.

The turmoil prompted several other Chinese internet companies — including audio content platform Ximalaya Inc. and shared-bike operator Hello Inc. — to shelve their U.S. IPO plans and await clarification on overseas listings, sources told Caixin before with. It also angered a large number of global investors in Chinese internet startups who had been waiting to benefit from the companies’ overseas IPOs.

To counter market fears, the CSRC proposed the new overseas IPO rules on Dec. 24, which aim to establish a unified monitoring system for all offshore listings of Chinese companies and provide a clear filing, review and approval process.

Continue reading
Caixin Explains What China’s Overseas IPO Rules Overhaul Is All About

Quick Takes are condensed versions of China-related quick news stories for you to use. Click here to read the full story in Chinese here.

Kelsey Cheng contributed to this report.

Contact reporter Lin Jinbing ([email protected])

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