China Unveils Sweeping Rules for Foreign IPOs in Didi’s Wake
- Rule would hit new listings via the so-called VIE structure
- China has stepped up scrutiny of foreign tech listings
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China has unveiled sweeping regulations governing overseas share sales by the country’s firms, taking one of its biggest steps to tighten scrutiny on international debuts in the wake of Didi Global Inc.’s controversial listing.
The regulations, issued by the country’s securities watchdog, commerce ministry and top economic planning agency over the past week, cast more uncertainty over the prospects for overseas initial public offerings that had proceeded virtually unchecked for two decades. The Nasdaq Golden Dragon China Index dropped 1.1% overnight despite another all-time high for U.S. shares, while the Hang Seng Tech Index slipped as much as 1.6% in Hong Kong trading Tuesday, dragged down by losses in Tencent Holdings Ltd. and Meituan.