Catenaa, Thursday, May 22, 2025- China will provide regulatory aid for domestic technology firms that list overseas, officials told on Thursday, as it tries to shape how tech companies do business.
Chief Risk Officer at the China Securities Regulatory Commission (CSRC) Yan Bojin said, a more efficient, transparent and predictable regulatory environment will be created within China to support technology firms listing overseas.
The regulator will further strengthen the security of funds raised by listed companies to ensure their allocation towards the main business rather than other purposes, Yan said.
China has accelerated efforts towards technology self-sufficiency as Washington steps up curbs against Chinese tech advancement, at a time of rising geopolitical tensions between China and the US.
The regulator will make greater efforts to support high-quality, unprofitable technology firms going public, said Yan.
The CSRC will also deepen reforms on Shanghai’s tech-focused STAR market and Shenzhen’s ChiNext board, and will encourage high-quality red-chip firms from the technology sector to list their shares domestically.
Firms with mainland Chinese ownership ties that are listed on the Hong Kong Stock Exchange are colloquially known as red chips.
Yan also said that since the release of the “Six Mergers and Acquisitions Guidelines,” listed companies have been actively planning mergers and reorganizations, achieving transformation and upgrading as well as industrial integration.
“Currently, more than 1,400 asset restructuring disclosures have been made by listed companies in Shanghai and Shenzhen, a year-on-year increase of over 40%; among these, there have been more than 170 major asset restructurings, with a year-on-year increase of over 220%,” he said.
