China has introduced new rules aimed at encouraging foreign investment in its listed companies, expanding the eligibility for foreign investors and reducing financial thresholds. Announced on Friday by the Ministry of Commerce, the revised regulations aim to attract more foreign capital amid China’s ongoing efforts to bolster economic growth.
One of the major changes under the new rules allows individual foreign investors to make strategic investments in Chinese-listed companies. The asset requirement for non-controlling foreign investors has also been halved, reducing the threshold from $100 million to $50 million, making it easier for foreign entities to enter the market.
Additionally, China has added a new investment method—tender offers—joining the previously permitted methods of private placements and negotiated transfers. This expansion in investment options aims to create a more dynamic and accessible investment environment for foreign investors.
The updated regulations underscore China’s intent to broaden foreign access to its markets as the country seeks to counter economic headwinds and increase international investment. These policy adjustments are part of China’s broader strategy to create a more open financial environment, addressing calls from international investors for greater participation in one of the world’s largest economies.
