Regulations to be relaxed for foreign A-share investors
Amendment advises transfer limits be reduced to 12 months and gives the green light to tender offers for aquisitions
The Ministry of Commerce plans to revise the regulations on foreign investors’ strategic investment of listed companies, as the amendment seeks further public opinion, The Paper reported.
Previously, foreign investors were not allowed to transfer their A-shares obtained by strategic investment within three years. While the amendment advises reducing the holding time period to 12 months.
Also, foreign investors are expected to be allowed to use tender offers to acquire listed companies.
In the new version, foreign investors can obtain and hold A shares of listed companies for a certain period of time through transfer agreements, non-public offering of shares and tender offers.
The new rules will also relax financial requirements on foreign investors.
Their assets shall not be less than US$50 million or the total amount of real assets managed by them shall not be less than US$300 million.
Previously, it was stipulated that the two figures should be no less than US$100 million and US$500 million, respectively.