China’s Securities Regulator Reaffirms Support for Offshore Listings

China Securities Regulatory Commission (CSRC), the country’s securities watchdog, has issued a no-objection letter to companies seeking US listings, including the e-commerce platform for industrial products ZKX (Chinese: 震坤行), an insider close to the regulator said.

In a video conference held by CSRC on March 27, some Chinese companies listed on US stock exchanges and venture capitalists participated, exchanging their views on the market.

“Both Chinese and US regulators are fully aware of each other’s concerns and are working together to find solutions,” said the insider.

The move aligned with Beijing’s effort to back offshore listings by Chinese firms, as expressed in a meeting on March 16, led by the financial stability committee of the State Council, China’s cabinet.

Last December, CSRC drafted new regulations meant to seek public input. It stipulates a better supervision system for firms planning direct or indirect overseas stock offerings, stronger cross-border regulatory synergies, clearer legal responsibilities, and enhanced systemic inclusiveness.

CSRC said at the time that China would continue in the direction of opening up the capital market to the outside world. The country supports enterprises to list abroad in compliance with the law and encourages them to make good use of the two markets. It added that the purpose of regulations is to promote development.

According to the insider, the drafted regulations, which are expected to help enterprises seeking overseas listings to “have rules to follow,” were eagerly anticipated by the market.

“The relevant regulations have undergone the process of gathering public feedback and will be formally implemented as soon as possible after necessary legislative procedures,” the source said.