Rule Contents
China Securities Regulatory Commission has finalized the disclosure rule for foreign companies seeking to list their China operations on the mainland bourses.
Aside from the regular corporate information, foreign-invested companies must disclose risks involved in their overseas raw material procurement process, technology transfer, and possible changes in preferential tax policies in China .
The listing candidates must also provide information regarding their transactions with their parent company over the past three years.
The rules has been in effect for more than a week.
Current Situation
Foreign companies that have expressed interest in selling their shares to Chinese investors include Anglo-Dutch consumer products giant Unilever's (UN) China unit and Hong Kong 's Bank of East Asia. Some Singaporean companies are also reportedly preparing to get listed.
The additional information requirement isn't likely to deter foreign-invested enterprises, including those from Hong Kong and Taiwan, from seeking stock listing on the Shanghai and Shenzhen stock exchanges.
China is working to attract big-name companies to list on its stock exchanges, which are currently dominated by small-sized and some state-owned enterprises that are yet to profit.
( April 01, 2002)
