China’s Offshore Listing Rules Seen Easing Market Uncertainty

China’s Offshore Listing Rules Seen Easing Market Uncertainty
Lunar eclipse rises over the skyline of Shanghai, in China, on Nov. 19, 2021. Aly Song/Reuters
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HONG KONG—China’s plan to tighten scrutiny over mainland companies’ overseas share sales is likely to ease the regulatory uncertainty that roiled financial markets this year and stalled offshore listings, bankers and analysts said.

But the securities regulator’s new filing-based system, designed to rein in once freewheeling Chinese listings in the U.S. market and elsewhere, leaves open questions about rule enforcement and compliance criteria, they added.