86 Domestic Companies Under Review for Overseas Listing and Issuance
The China Securities Regulatory Commission (CSRC) has been working to promote the overseas listing and issuance registration of domestic enterprises in a regular, orderly, and transparent manner. According to Fang Xinghai, vice chairman of the CSRC, a total of 86 domestic companies have completed registration after the implementation of the new overseas listing regulations. Among them, 51 plan to be listed in Hong Kong, China, and 35 plan to be listed in the United States.
The CSRC has also further improved the methods for overseas issuance of global depositary receipts by domestic listed companies, approving 23 listed companies to issue GDRs, raising approximately US$12.2 billion.
In 2023, two companies using a Variable Interest Entity (VIE) structure, Cheche Technology and Jitu Express, obtained overseas listing filing notices, boosting confidence in the overseas listings of domestic companies.
The new filing regulations aim to promote more enterprises with high-quality development potential to obtain services suitable for their development in the capital market. The CSRC is committed to further improving the overseas listing mechanism and implementing the new trial rules for overseas listing filing.
It is vital to note that the regulatory, regulatory, and institutional system for overseas listing of domestic enterprises has been attracting much market attention. The new pilot regulations for overseas listing registration have been in effect for more than nine months, with overseas listings progressing at a pace of over four companies completing registration per week.
The CSRC’s “Domestic Enterprises Overseas Issuance of Securities and Listing Filing Status Table” shows that as of January 4, 2024, 86 domestic enterprises are under review for overseas listing. These companies span various industries, with plans to list in Hong Kong, the United States, and Switzerland.
During the registration review process, the CSRC has been concerned with equity structure, red-chip structure construction, agreement control, historical evolution, legal compliance, and equity incentives. The regulatory commission has also been focused on corporate governance, requiring companies to provide additional responses on various aspects of compliance.
The 86 companies under review represent a significant step in promoting the overseas listing and issuance registration of domestic enterprises, signaling the continued opening of China’s capital market and the ongoing efforts to support high-quality development potential in the global market.