Bloomberg analyzed that when the economic rebound drove investors' interest in the heating up of Chinese assets, Beijing's regulatory position in the capital market softened, and it is expected that a wave of new shares will be promoted.

(Beijing Comprehensive News) The China Securities Regulatory Commission has released the management rules of new domestic enterprises on overseas listing. It is clear that if the overseas listing of enterprises may endanger national security, it will be banned.Rectification or divestitudes of business assets to avoid affecting national security.

According to the trial measures for domestic enterprises and listing management overseas based on the China Securities Regulatory Commission on Friday (February 17), Chinese enterprises that go to China that goes abroad must effectively fulfill their national security obligations and cannot harm national interests.The method will be implemented from March 31.

The person in charge of the relevant departments of the Securities and Futures Commission emphasized that as long as the enterprise is compliant according to law, it will not be affected no matter which market goes on the market, and the regulatory authorities will give support.

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Methods show that it will support the listing enterprises that meet the compliance requirements (VIE) architecture to be listed abroad.Reuters explained that VIE architecture companies refer to Chinese companies to set up a company overseas in order to go public overseas, so that foreign investors can buy their stocks.This architecture is mainly because China has restrictions on the shares of sensitive industry companies directly in foreign capital.

Bloomberg analyzed that under the new regulations, domestic companies can transfer profits to offshore entities, and foreign investors can hold the entity shares.This shows that when the economic rebound drives investors' interest in Chinese assets, Beijing has softened the supervision of the capital market, and it is expected that a wave of new shares will be promoted.

Previously, due to the constant tightening of the supervision of the China and the US Securities and Exchange Commission, Chinese companies were in difficulty in listing in New York.VC trading has reached the biggest decline in more than 20 years.

In addition, the China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission also signed a memorandum of regulatory cooperation on Friday to further strengthen the supervision and cooperation of domestic companies on listing in Hong Kong.