China mulls to relax control over foreign strategic investment
China's Ministry of Commerce (MOC) on Monday asked for the public's opinion on a revised measure concerning foreign investors making strategic investments in Chinese listed companies.
"The A shares acquired by foreign investors through strategic investment are not tradable for 12 months," according to the revision on the ministry's website.
Currently, working regulations stipulate that such shares are not tradable for three years. The new rule shows the country's intention to relax its grip over foreign strategic investment.
The revision also loosens control over the requirements for foreign investors, saying that to make strategic investments in Chinese listed firms, a foreign company must own actual overseas assets of no less than 50 million U.S. dollars or manage actual overseas assets of no less than 300 million U.S. dollars.
Under current rules, a foreign firm must own assets of no less than 100 million U.S. dollars or manage assets of no less than 500 million U.S. dollars.
The revision was made to "expand the channels of using foreign investment and promote the healthy development of China's securities market," the MOC said.
The public is welcome to make suggestions on the draft revision before Aug 29, 2018, via email, fax, letters or by visiting the ministry's website.
As China marks the 40th anniversary of the reform and opening-up policy this year, it has taken a series of measures to expand its opening-up to the outside world.
A month ago, the country unveiled a shortened negative list for foreign investment, with the number of items in it down to 48 from 63 in the previous version.