China has announced that it will support eligible foreign-funded companies that seek to list on domestic stock exchanges, as part of a broader policy initiative aimed at strengthening foreign investment inflows and improving market confidence.
The decision was included in a new action plan jointly released by the Ministry of Commerce, the National Development and Reform Commission, and the Ministry of Finance.
The coordinated policy reflects Beijing’s effort to enhance the country’s attractiveness as an investment destination amid ongoing global economic uncertainty.
Under the plan, qualified foreign-funded firms will be allowed to pursue listings on Chinese stock markets.
In addition, the policy calls for accelerated revisions of existing regulations governing mergers and acquisitions involving both foreign and domestic companies.
This is intended to streamline cross-border deal-making and improve transaction efficiency.
The action plan also permits qualified foreign equity investment institutions to participate in share issuances of certain listed companies, further expanding the role of foreign capital in China’s domestic equity markets.
According to Reuters, these measures are designed to provide more structured and predictable access for international investors.
The announcement is part of a wider set of efforts by Beijing to stabilise economic activity and support investor sentiment, particularly as the country seeks to attract long-term foreign capital inflows.
Financial markets reacted positively in mainland China following the announcement. The CSI 300 Index rose by 0.7% in intraday trading, while the Shanghai Composite Index gained 0.2%, supported by expectations of improving corporate earnings and stronger domestic risk appetite.
However, sentiment in Hong Kong markets moved in the opposite direction. The Hang Seng Index fell by around 1%, as investors weighed concerns over potential increases in US interest rates and a wave of new share supply expected from recent IPO listings.
Overall, the policy shift signals China’s intent to open additional channels for foreign participation in its capital markets while balancing regulatory control with efforts to support economic growth.
