China Securities Regulatory Commission (CSRC)’s chief risk officer, Yan Bojin, announced that the nation will impose regulations that support technology companies on listing overseas as the U.S. pushes their effort to limit Chinese tech advancement.
According to Yan, this regulation would be more efficient, transparent and predictable as it would tighten security to ensure that the funds of listed companies, especially high-quality, unprofitable technology firms, will be used for the overseas listing process.
The U.S. has been trying to curb the development of China technology for some time. During Joe Biden’s administration, the U.S. imposed chip restrictions on China. Now in Donald Trump’s era, the U.S. waged a trade war against China, and now plans to sanction Huawei chip.
Besides the regulation, CSRC also plans to improve Shanghai Stock Exchange’s Science and Technology Innovation Board and the ChiNext board, while also motivating red chips (Chinese companies that are listed on Hong Kong Stock Exchange but operate in the mainland) to list their shares back in China.
