July 30, 2018 / 10:59 AM / 23 days ago

China proposes eased rules on foreign strategic investment in listed companies

BEIJING (Reuters) - China’s commerce ministry has proposed some rule-changes to facilitate foreign strategic investment in listed companies, its latest move to ease foreign investment curbs amid Beijing’s trade dispute with the United States.

In draft rules posted on its website on Monday, 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 lock-up 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.

The statement said draft rules would apply to “strategic investment” made by foreign investors to obtain and hold for a certain period of time listed companies’ A-shares through agreements, the issuance of new shares, tender offers and other means as stipulated by laws and regulations.

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

Reporting by Yawen Chen and Kane Wu; Editing by Richard Borsuk

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