HONG KONG—Two Chinese regulators announced draft rules for Chinese firms’ offshore listings over the past week, providing some clarity on how they plan to scrutinize capital market activities amid a broader regulatory crackdown.
New Rules for Offshore Listing
The China Securities and Regulatory Commission (CSRC) on Dec. 24 proposed tightening rules governing Chinese companies listing abroad, which it said would improve oversight.The new rules will target companies incorporated offshore using a structure known as Variable Interest Entities (VIE). Previously, the regulator would only examine firms incorporated in China and wanting to do an offshore listing.
