{"id":118932,"date":"2021-07-29T04:15:03","date_gmt":"2021-07-29T04:15:03","guid":{"rendered":"https:\/\/fin2me.com\/?p=118932"},"modified":"2021-07-29T04:15:03","modified_gmt":"2021-07-29T04:15:03","slug":"china-will-still-allow-ipos-in-the-united-states-securities-regulator-tells-brokerages","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/china-will-still-allow-ipos-in-the-united-states-securities-regulator-tells-brokerages\/","title":{"rendered":"China will still allow IPOs in the United States, securities regulator tells brokerages"},"content":{"rendered":"<ul>\n<li>China will continue to allow Chinese companies to go public in the U.S. as long as they meet listing requirements, China&#x27;s securities regulator told brokerages late Wednesday, according to a source familiar with the matter.<\/li>\n<li>China Securities Regulatory Commission (CSRC) Vice Chairman Fang Xinghai made the comment during a virtual meeting with major investment banks on Wednesday, the source said.<\/li>\n<li>Chinese stocks listed in Asia and the U.S. \u2014 including big names like Alibaba and Tencent \u2014 plunged in the last several days as Chinese authorities increased scrutiny on tech companies over monopolistic practices and data security.<\/li>\n<\/ul>\n<p>China will continue to allow Chinese companies to go public in the U.S. as long as they meet listing requirements, China&#x27;s securities regulator told brokerages late Wednesday, according to a source familiar with the matter.<\/p>\n<p>A series of regulatory actions in the last few weeks has heightened investor concerns that Beijing is trying to block foreign capital flows into Chinese assets.<\/p>\n<p>The cross-border stock listings can also occur using the variable interest entity structure, the source said, citing the regulator. It refers to a legal structure which allows international investors to access shares of Chinese companies in the U.S.<\/p>\n<p>The regulator recognized the structure is a vital way for companies to attract foreign capital, but said it would have to be adjusted if there were national security concerns, said the source, who requested anonymity due to the sensitivity of the matter.<\/p>\n<p>China Securities Regulatory Commission Vice Chairman Fang Xinghai made the comment during a virtual meeting with major investment banks on Wednesday, the source said. It followed days of sharp selling in Chinese stocks on fears of increased regulatory crackdown by Beijing.<\/p>\n<p>Bloomberg first reported news of the meeting.<\/p>\n<p>The securities regulator\u00a0has stopped short of making an official public statement. The commission\u00a0did not immediately respond to a CNBC request for comment.<\/p>\n<p>Chinese stocks listed in Asia and the U.S. \u2014 including big names like Alibaba and Tencent \u2014 plunged in the last several days as Chinese authorities increased scrutiny on tech companies over monopolistic practices and data security.<\/p>\n<p>A policy document that began circulating widely Friday called for Chinese after-school tutoring companies to become non-profits, sending the stocks plunging by double-digits in Hong Kong and the U.S.<\/p>\n<h2>Read more about China from CNBC Pro<\/h2>\n<p>Tencent and more: Investment firm names &#x27;high quality&#x27; Chinese stocks trading at a discount<\/p>\n<p>Ark Invest&#x27;s Cathie Wood dumps more Chinese stocks amid crackdown<\/p>\n<p>Goldman Sachs downgrades Chinese education stocks on prediction market will &#x27;shrink significantly&#x27;<\/p>\n<p>The policy specifically banned tutoring companies from raising money through the stock market or having foreign investors, particularly through the variable interest entity legal structure that allows international investors to access Chinese shares.<\/p>\n<p>The speed and breadth of the policy surprised many. Goldman Sachs on Monday downgraded Chinese education stocks on expectations the after-school tutoring market would &quot;shrink significantly&quot; \u2014 to less than one-fourth its current $106 billion size.<\/p>\n<p>However, the securities commission&#x27;s Fang said the policy was intended to reduce the burden on parents \u2014 not shut off foreign investment \u2014 and the education companies will have as much time as needed to restructure, according to the source.<\/p>\n<p>The education policy in question was issued by the State Council \u2014 China&#x27;s top executive body \u2014 and the Chinese Communist Party&#x27;s central committee.<\/p>\n<p>Source: <a href=\"https:\/\/www.cnbc.com\/2021\/07\/29\/china-to-still-allow-ipos-in-the-us-securities-regulator-csrc-says.html\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>China will continue to allow Chinese companies to go public in the U.S. as long as they meet listing requirements, China&#x27;s securities regulator told brokerages [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":118931,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - 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