Current location:Global Gallery news portal > style
China to relax foreign investment rules amid further opening up
Global Gallery news portal2024-05-21 12:08:20【style】1People have gathered around
IntroductionAerial photo taken on April 19, 2017 shows the pilot free trade zone in Wuhan City, capital of centr
Aerial photo taken on April 19, 2017 shows the pilot free trade zone in Wuhan City, capital of central China's Hubei Province. (Xinhua/Xiong Qi)
China will relax rules for foreign investment, increasing its market appeal to global investors and signaling its determination to deepen opening up.
The country's Ministry of Commerce (MOC) has made public its plan for formulating regulations and laws in 2021, putting on agenda the revision of the guideline on foreign strategic investment in Chinese listed firms.
The revision seeks to "ease restrictions on foreign strategic investment, and introduce innovative supervision approaches for the sector," the MOC said in a recent online statement.
The move came as the guideline, which was issued 15 years ago, cannot satisfy the current demand of foreign investment attraction given the country's rapid development over the years.
Wang Jian, a professor at the University of International Business and Economics, said the revision was a signal to the world, indicating that China will continue its reform and opening-up policy, gradually loosen restrictions on foreign investment in listed firms, and foster a more enabling investment environment.
As the market is waiting for the upgraded guideline, a draft revision unveiled last June offered a glimpse of the upcoming rules.
The June draft lowered asset requirements for investments. It stipulated that foreign investors should either own at least 50 million U.S. dollars or manage no less than 300 million dollars of assets for market entry, compared with the current thresholds set at 100 million dollars and 500 million dollars, respectively.
It also reduced the lock-up period for foreign shareholders' stocks from three years to 12 months and removed shareholding limits of foreign strategic investment through listed firms' targeted placements.
Commenting on the lowered bar for foreign investment, Wang said it meant that apart from productive investment, China also welcomes foreign strategic investment in listed firms with open arms.
"The changes showed that China is gradually opening its equity market to the world, which is also conducive to the sound and healthy development of its stock market," Wang noted.
Opening up has been frequently brought up by China's policymakers over the years of its rapid economic growth. Despite a virus-induced economic slowdown across the world, the country's opening-up momentum remains unabated.
China has taken several major steps to open its door wider since last year: implementing the Foreign Investment Law, trimming the negative list for foreign investment and easing foreign access to the financial market.
In the country's new development blueprint, the 14th Five-Year Plan, it reiterates the commitment to promoting reform and opening up while pursuing high-quality development.
With a 4-percent growth in foreign direct investment (FDI) inflows last year, China stood out as the largest recipient of FDI in the world, according to a report from the United Nations Conference on Trade and Development.
In the first four months of 2021, FDI into the Chinese mainland, in actual use, surged by 38.6 percent year on year, MOC data showed.
Address of this article:http://mauritania.elfsignes.com/news-74d599896.html
Very good!(44584)
Related articles
- OpenAI pauses ChatGPT voice after Scarlett Johansson comparisons
- At least 3 shot during Eid al
- Man accused of stealing $2000 worth of groceries in Auckland
- HKFP launches permanent digital archive of the History Museum's 'Hong Kong Story'
- French sports minister calls for sanctions after Monaco player tapes over anti
- US, Britain announce partnership on AI safety, testing
- Earth's inner core made up of superionic matter, Chinese study says
- Google to delete records from Incognito tracking
- Company wins court ruling to continue development of Michigan factory serving EV industry
- Evergrande shares suspended from trading as liquidation concerns mount
Popular articles
Recommended
Inquiry slams UK authorities for failures that killed thousands in infected blood scandal
7.7 earthquake hits Taiwan, rescues from collapsed buildings underway
VOX POPULI: Molds can make food colorful and tasty but they can also be lethal
Delhi smog: Years being taken off people's lives as China shows how to beat smog
Uber and Lyft say they'll stay in Minnesota after Legislature passes driver pay compromise
President Lula to showcase Brazilian pasture recovery program at COP28
Yan Chenglong: Chinese chess champ dethroned after defecating and sex toy cheat claims
China updates: Chinese military holds large
Links
- Stock market today: Asian shares are mixed, taking hot US inflation data in stride
- Goldman, Brown families could be first in line for OJ Simpson's assets
- New York Philharmonic to tour China this summer
- The show goes on for Paramount with ‘Gladiator II,’ a new Damien Chazelle movie and more
- When's the next eclipse after 2024? Watch for these celestial events
- The Masters is at the center of the golf fashion universe
- China sanctions 2 US defense companies and says they support arms sales to Taiwan
- Tobacco companies using Tiktok to target young people
- Odysseus: Moon lander tipped over at touchdown, limiting the data it's sending
- Moon landing: Odysseus marks first US landing in over 50 years