Chinese companies have been granted clearer rules for listing on foreign stock exchanges, following a 2021 regulatory clampdown on overseas initial public offerings (IPOs).
Firms will now have to comply with national security and personal data laws before floating in other countries, the China Securities Regulatory Commission (CSRC) said.
Variable interest entity structures, which are often used by Chinese firms and allow investors to have control despite not holding a majority share, will still be ok, though IPO underwriters will have to report annually to the CSRC.
"Offshore listing is a key component of China's capital markets opening," the watchdog said, and show the country is perusing “its direction of opening up” after the pandemic.
China clamped down on firms looking to float elsewhere after tech firm Didi Global listed on the New York Stock Exchange in June 2021, sparking fears of data leaks.
As a result, just US$230mln was raised by Chinese companies listing in the US last year, down from US$12.85bn in 2021, according to Refinitiv data.
The new rules will come into effect on 31 March, threatening companies which fail to comply with a 10mln Yuan (£1.21mln) fine.