China's securities regulator has adopted rules that will allow foreign-listed Chinese companies to raise funds in the domestic market, providing local investors access to U.S.-listed firms such as Alibaba Group Holding Ltd. and Baidu Inc.
The China Securities Regulatory Commission said the trial rules would enable certain overseas-listed Chinese companies to launch secondary listings in the domestic market through the issuance of China depositary receipts, Reuters reported. The regulator said it has set stringent selection criteria and would control the size, timing and pace of any issuance of the receipts.
The rules take effect immediately, Reuters said June 7. The commission approved June 6 the launch of six Chinese mutual funds that would be allowed to invest in the upcoming listing of high-tech companies.
