Asia lobby group pushes for easing of China’s offshore listing rules

asia-lobby-group-pushes-for-easing-of-china’s-offshore-listing-rules
Asia lobby group pushes for easing of China’s offshore listing rules

China’s new offshore listing rules for domestic companies have left bankers and lawyers unsure how to take on liabilities and avoid breaching tightened confidentiality rules, according to Asia’s largest financial lobby group, ASIFMA. The rules for offshore stock exchange listings come into effect on March 31 as part of Beijing’s regulatory tightening on cross-border listings. ASIFMA counts leading global investment banks Goldman Sachs, JPMorgan Chase & Co, and UBS Group among its more than 170 financial firm members.

Lyndon Chao, managing director of ASIFMA’s equities and post-trade division, told RushHourDaily that there is “a lot of nervousness” among bankers, lawyers, and accountants who are now required to formally pledge with China’s securities regulator within three days of an overseas listing that they guarantee “truthfulness, accuracy, completeness” of their work. ASIFMA voiced these concerns to the China Securities regulatory Commission (CSRC) at a recent meeting, and the watchdog has promised efforts to offer a solution.

The CSRC also issued a parallel confidentiality rule at the end of February, demanding that “working papers” produced onshore by banks and other service providers during the listing process be retained onshore, as Beijing stepped up oversight of all types of cross-border data transfers. Chao said that the concept of such papers is vaguely defined and has given rise to disputes among investment banks and law firms over which side is primarily responsible for storing the documents. He added that keeping the information entirely onshore would conflict with requirements by offshore authorities such as those in New York and Hong Kong, the top two listing venues for Chinese companies looking to raise capital via equity offerings.

Chao said that this situation is not good for China or Chinese companies seeking capital from the world.

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Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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