China eases foreign strategic investment in listed firms.

China has relaxed rules on foreign investors’ strategic investment in listed companies starting from Monday in a move to expand foreign investment channels in China’s stock market and encourage foreign investors to make long-term and value investments in the country.

The revised rules, jointly released by six government departments including the Ministry of Commerce and the China Securities Regulatory Commission (CSRC), allow foreign natural persons to make strategic investments in listed companies – a change from the old rules that only allowed foreign legal persons or organizations to make such investments.

Additionally, the capital requirement limit is lowered under the new rules for foreign investors that do not become the controlling shareholders in listed firms. The latest capital requirement will be no less than $50 million in total actual assets or no less than $300 million in total managed actual assets.

Source: GLOBALTIMES