Thread by @kendraschaefer

New rules are coming for Chinese companies seeking to list abroad. Chinese policymakers are trying pretty hard to assure markets that Chinese companies will still be allowed to IPO overseas - but they will need to follow new rules in doing so. 1/14 finance.people.com.cn/n1/2021/0801/c…

"The 30th meeting of the Political Bureau of the CPC Central Committee proposed to improve the regulatory system for domestic enterprises listing overseas." 2/14

"This is not only a practical matter of improving relevant regulations and standardizing the behavior of relevant enterprises in response to a changing situation, but also reflects China's firm determination to promote opening up and make use of dual sources of capital." 3/14

"The choice to list overseas is made independently by enterprises based on their own needs. No matter where they list, a listed company must comply with the relevant laws, regulations, and regulatory requirements of both the place they list and the place they do business." 4/14

"Based on this premise, China supports enterprises to use two markets and two sources of capital for financing in accordance with laws and regulations. This open attitude will not change." 5/14

"At the same time, we must also be aware that as the global economic and financial situation changes, new biz models and new technologies emerge in an endless stream, and subsequently, new reqs must be put forward for the ... market supervision of overseas listed companies." 6/14

"New circumstances and new problems in China related to the relationship between openness and security must be properly dealt with." 7/14

"Adapting to change, improving the regulatory system for overseas listing, and standardizing the behavior of [listed] enterprises are reasonable measures intended to promote the orderly development of overseas listing, which will help prevent and resolve related risks." 8/14

"Improving the regulatory system for overseas listing ... is necessary to further strengthen the overall coordination between government departments, to scientifically define the scope of policy implementation, and to promote the implementation of regulations more steadily." 9/14

"As global financial markets becomes increasingly interconnected, financial regulatory agencies in various countries need to strengthen cooperation and communication, and jointly provide the market with predictable policy and a good business environment." 10/14

"It should be noted that the improvement of the regulatory system for overseas listing is proposed in the context of China's firm promotion of opening up to the outside world." 11/14

"In recent years, China's capital markets have been opening up steadily... and overseas listing is an important part of two-way opening up... ." 12/14

"In the future, the global economic and financial situation will face greater uncertainty, but China will further open its door, and share development opportunities with other countries. ... The level of openness in China's capital markets will surely increase steadily." 13/14

Too long, didn't read: "Everyone chill out, you can still have your foreign cash and choose where you IPO, but you'll need to follow a procedural checklist... just as soon as we make one. Also, coordination between countries, plz." 14/14