China’s top securities regulator, the China Securities Regulatory Commission (CSRC), has revised the regulation on secret protection and archive management in the overseas listing for domestic companies, in a move to enhance cooperation in cross-border oversight and create a favorable environment for lawful overseas listings of Chinese firms.
The revision, which has been completed jointly with the Ministry of Finance, the National Administration of State Secrets Protection and the National Archives Administration, aims to match the newly released regulation for Chinese companies’ overseas securities offering and listing. Both regulations will come into effect on March 31, 2023.
According to the CSRC, the revision has made adjustments to the application range of the regulation, clarified the direction for secret protection and archive management in the overseas listing, and enhanced cooperation in cross-border oversight.
With the recent release of a new regulation for the filing-based management of overseas securities offering and listing of Chinese companies, the CSRC continues to push for high-level institutional opening-up of the capital market, expand oversight cooperation, and create a more favorable environment for the lawful overseas listing of Chinese companies.
The new regulation comprises one document of trial measures and five guidelines, providing clearer direction for companies looking to list overseas. With this new regulation, the CSRC aims to streamline the process for Chinese firms seeking to list overseas and improve oversight of the overseas listing process.
By creating a more favorable environment for Chinese firms seeking to list overseas, the government hopes to encourage more domestic firms to consider such listings, which could, in turn, increase the flow of capital into the country and drive economic growth.
Overall, the revisions to the regulation on secret protection and archive management in the overseas listing for domestic companies, combined with the new regulation for the filing-based management of overseas securities offering and listing of Chinese companies, represent a significant step forward in China’s efforts to enhance cross-border oversight and create a more favorable environment for the lawful overseas listing of Chinese firms.