Restriction decision for overseas public offerings from China

In China, the regulation for public offerings, which global markets have been waiting for a while, has been officially announced. According to the new list of industries subject to foreign investment approval, which will be effective from January 1, 2022, Chinese companies operating in sectors where foreign investment is prohibited in China will have to obtain the approval of regulatory authorities for their initial public offerings (IPOs) in foreign countries. According to the list published by the country's economic planning agency, NDRC, and the Ministry of Commerce, overseas investors will be restricted from participating in the management of these companies. In the statement, it was stated that the list published will be valid for new overseas IPOs and that no changes are required for existing initial public offerings (IPOs).