China has eased regulations to attract foreign investment, allowing overseas individuals to provide capital to publicly traded firms as strategic investors, according to a statement released by the China Securities Regulatory Commission, the Commerce Ministry, and other agencies. The minimum investment required for foreign investors seeking non-controlling stakes has been reduced from USD500m to USD300m. Foreign investors can now make strategic investments through tender offers, and the previous 10% minimum stake requirement for private placements has been removed. The mandatory holding ratio for shares acquired via tender offers or agreements has been lowered to 5%, with the lock-up period shortened to 12 months from three years. These measures aim to reverse declining foreign direct investment amid concerns over economic growth and regulatory challenges.
top of page
bottom of page