Business / Markets

Overseas listing of domestic firms to be made easy

By Jiang Xueqing ( Updated: 2015-01-19 14:47

China will further simplify the procedure of approval for domestic companies to be listed overseas, said Xiao Gang, chairman of the China Securities Regulatory Commission at the Asian Financial Forum in Hong Kong on Monday.

The CSRC has reduced the 17 requirements for domestic companies to go public overseas to three requirements. For instance, it has deleted the requirement for Chinese-funded companies to be profitable before it gets listed in Hong Kong.

"Next, we will cancel the requirement for domestic companies to be profitable before they get listed in the Chinese mainland," Xiao said.

The Chinese securities regulator has exempted mainland firms to seek listing elsewhere by submitting the financial reports adjusted to foreign accounting standards, or other documents such as draft audit report, feasibility analysis and underwriting intention paper issued by foreign investment banks.

It will push forward a reform by introducing a registration-based system for stock issuance, which is the top priority of the CSRC in 2015, and will become a major breakthrough to promote regulatory transformation, Xiao said at the annual national work conference on securities regulation earlier this month.


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