BEIJING (Reuters) -China will provide a more efficient, transparent and predictable regulatory environment to support technology firms listing overseas, Chief Risk Officer at the China Securities Regulatory Commission (CSRC) Yan Bojin said at a news briefing on Thursday.
The regulator will further strengthen the security of funds raised by listed companies to ensure their allocation towards the main business rather than other purposes, Yan said.
China has accelerated efforts towards technology self-sufficiency as Washington steps up curbs against Chinese tech advancement, at a time of rising geopolitical tensions between China and the U.S.
The regulator will make greater efforts to support high-quality, unprofitable technology firms going public, said Yan.
The CSRC will also deepen reforms on Shanghai’s tech-focused STAR market and Shenzhen’s ChiNext board, and will encourage high quality red-chip firms from the technology sector to list their shares domestically.
Firms with mainland Chinese ownership ties that are listed on the Hong Kong Stock Exchange are colloquially known as red chips.
(Reporting by Ziyi Tang, Xiuhao Chen and Ryan Woo; Editing by Jacqueline Wong and Aidan Lewis)
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