China refutes report that it will ban variable interest entities from listing overseas

The China securities regulator labels the report as being "not factual"

This comes after an earlier report by Bloomberg, stating that China plans to ban the loophole that is exploited by tech firms for foreign IPOs.

The loophole is one that is long used by Chinese tech firms as they seek going public in foreign stock markets through variable interest entities in order to raise capital.

The report stated that China's ban was intended to address concerns over data security and may be finalised as soon as later this month. But for now though, Chinese authorities seem to be denying it but we'll see if there will be any more news in a few weeks' time.

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December 01, 2021 at 11:37PM
Justin Low
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