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在线翻译:
szdaily -> Markets -> 
Rules for foreign investment to ease
    2018-08-02  08:53    Shenzhen Daily

CHINA plans to lower the threshold for foreign investors to make strategic investment in listed companies in the country, which is the latest in a series of measures to further open the market.

According to a draft of revised rules released by the Ministry of Commerce (MOC), the ministry proposed to loosen certain terms regulating such foreign strategic investment, including reducing the amount of assets it requires foreign investors to hold to qualify for such investments in Chinese listed companies.

“The move is an important incentive for foreign investors to invest in China, a part of the nation’s substantial measures to further open up the economy,” said Li Shuguang, an economist and a professor at China University of Political Science and Law.

The lockup period facing foreign investors after they invest in A-shares of listed companies would be reduced to one year from three at present, according to the draft rules.

“This shortened lockup period would create more liquidity for foreign investors, so they can control their capital flow in a much more flexible manner,” Li said.

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 US$50 million or manage actual overseas assets of no less than US$300 million.

Under current rules, a foreign firm must own assets of no less than US$100 million or manage assets of no less than US$500 million.

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 consultation period for the proposed rules runs until Aug. 29, the statement said.

In early July, the country released a shorter negative list for free trade zones and a list applicable nationwide. The list shows areas where investment is limited or prohibited for foreign investors, with all other areas presumed to be open.

The new list reduces the number of sectors restricted for foreign investors to 45 in all free trade zones, from 95 last year.

(SD-Xinhua)

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