China plans regulation to aid tech firms listing overseas, official says
BEIJING, May 22 (Reuters) - China will provide a more efficient, transparent and predictable regulatory environment to support technology firms listing overseas, Chief Risk Officer at the China Securities Regulatory Commission (CSRC) Yan Bojin said at a news briefing on Thursday.
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 U.S.
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
36 minutes ago
- Reuters
Bank of Korea chief says excessive rate cuts could cause price upswing in property markets
SEOUL, June 12 (Reuters) - South Korea's central bank governor said on Thursday "excessive" policy interest rate cuts could cause another round of price upswings in the property market and increase volatility in currency markets, although the domestic economy remains sluggish. "If we rely too much on economic stimulus policies out of urgency, there may be greater side effects later on. For example, if we cut the base interest rate excessively, there is a high risk that it will lead to a rise in real estate prices," Governor Rhee Chang-yong said in a speech prepared for the bank's 75th anniversary. His comments come after the bank flagged more rate cuts to come on the day it trimmed borrowing costs by a quarter percentage point to 2.5% on May 29, to reflect the impact of the U.S. trade tariffs and tepid domestic consumption. The widely expected rate cut, the fourth in the current easing cycle, came as the newly elected President Lee Jae-myung geared up for major stimulus measures including this year's second extra budget to boost growth. Rhee's concerns about excessively cutting interest rates also stemmed from recent currency market volatility. "The gap between domestic and foreign interest rates may widen further as the U.S. Federal Reserve adjusts the pace of its interest rate cuts, and uncertainty surrounding the results of trade negotiations with major countries may increase, leading to increased volatility in the foreign exchange market," Rhee said in the speech.
Auto Blog
41 minutes ago
- Auto Blog
Tesla's Top Rival BYD Ignites EV Pricing War in China
BYD's newest price cuts in China may cause the country's average EV discount to reach a record high for the second month in a row. BYD set to move larger volumes with newest price cuts BYD has reignited China's electric vehicle (EV) price war after lowering the price of 22 all-electric and plug-in hybrid vehicles by up to 34% through the end of June. Subsequently, shares of many Chinese EV makers, including BYD, tumbled. The Seal hybrid sedan saw the most significant price cut in BYD's lineup at 34%, lowering its starting cost to $15,000 or 102,800 yuan. 0:03 / 0:09 Nissan's revolutionary self-driving tech hits Japan's streets Watch More However, BYD's price changes don't impact its luxury inventory, which includes the Denza FangChengBao and Yangwang lines. China's IM Motors, Leapmotor, and Geely's Galaxy have also announced price cuts in response to BYD's move. Other key players, like XPeng, Nio, and Li Auto, haven't yet slashed any price tags. European automakers like Volkswagen, BMW, and Mercedes-Benz will likely see further EV sales declines in China after BYD's bold move, given their reluctance to enter the country's new energy vehicle (NEV) price war. Tesla China registrations have also lagged in Q2. BYD Seal — Source: BYD Why BYD is one of the EV price war's largest players BYD has been considered a leader in China's EV price war with its in-house battery production and ability to get volume discounts from suppliers. The automaker is one of China's three profitable EV makers among the country's 50 or so electric car manufacturers. According to Investor's Business Daily, BYD introduced its latest price cuts in response to rising dealer inventories, causing some to wonder whether China's NEV push is losing steam. Chinese officials have also been investigating the possibility of zero-mileage car sales, where automakers pad their delivery numbers by reporting vehicles as sold that are being distributed to finance companies and used auto dealers, Clean Technica reports. In other words, Chinese automakers might be recording zero-mileage cars as sold when end users haven't purchased them. A slowdown in NEV sales would be a significant concern among Chinese officials regarding the country's economic goals and environmental sustainability. New price cuts from BYD also stem from the automaker's desire to reach 5.5 million sales this year, representing a 1.5 million increase from 2024. BYD's U.S. stocks declined 9.75% on Tuesday after the company's pricing announcement, while XPeng, Nio, and Li Auto's U.S. shares fell 3.8%, 4.1%, and 2.6%, respectively, according to Investor's Business Daily. Close to half of all China's new car sales are all-electric and PHEV, Electrek reports. By comparison, less than 10% of U.S. new vehicle sales are NEVs. Victor Sun, senior equity analyst at Morningstar, said he expects BYD to: 'Offset the impact [of its discounts] via larger sales scale and [its] battery cost staying low,' according to CNBC. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. BYD Seagull — Source: Getty Final thoughts Market reactions to BYD's discounts reflect how investors are nervous about an escalating EV price war in China and increased scrutiny from the country's regulators regarding sales numbers. In April, China's EV discounts reached a record high of 16.8%, and it appears this figure will climb higher in May. BYD, Seres, and Li Auto are the only three Chinese EV makers currently profitable, and an intensifying price war is setting the stage for an industry shakeout where smaller competitors will likely go under or get bought out by competitors. About the Author Cody Carlson View Profile
BBC News
an hour ago
- BBC News
Trump claims rare earths deal 'done' with China
When Trump announced sweeping tariffs on imports from a number of countries earlier this year, China was the hardest hit. China responded with its own higher rates on US imports, triggering further tit-for-tat increases. In May, talks held in Switzerland led to a temporary truce that Trump called a "total reset". It brought Trump's new US tariffs on Chinese products down from 145% to 30%, while Beijing slashed levies on US imports to 10% and promised to lift barriers on critical mineral exports. It gave both sides a 90-day deadline to try to reach a trade deal. But the US and China subsequently claimed breaches on non-tariff pledges. In his social media post, Trump said the US would have tariffs on Chinese goods of 55%, but officials said the figure included tariffs put in place during his first term. Markets showed little response to the deal, which Terry Haines, founder of the Washington-based consultancy Pangaea Policy, described as having both "very limited scope and unfinished status". "Setting the Geneva 'pause' back on track is the smallest of accomplishments, and doesn't suggest that a broad US-China trade deal or geopolitical rapprochement is any closer in the foreseeable future," he wrote.
