China releases draft amendment measures on foreign strategic investments in listed companies
1 July 2020
China | Foreign Direct Investment | July 2020
CHANGES THAT INDICATE FURTHER OPENING UP OF THE CHINESE CAPITAL MARKET
On 18 June 2020, the Chinese Ministry of Commerce ("MOFCOM") released a revised draft amendment of the Administrative Measures for Strategic Investment by Foreign Investors in Listed Companies ("2020 Draft"), set to replace the current measures in effect since 30 January 2006 ("Measures"). The 2020 Draft is open for public comments until 19 July 2020, and if promulgated, it will be a major change leading to the further opening of the Chinese capital market.
MOFCOM released a previous draft amendment in 2018, which was never adopted ("2018 Draft"; please refer to our previous Client Alert on this topic here). However, major revisions to the Measures in the 2018 Draft are included in the 2020 Draft. Furthermore, compared to the 2018 Draft, the 2020 Draft further revises the Measures in line with other legislative reforms regarding foreign investment enacted this year.
Please click below to download our Client Alert in full, which highlights the key points of the 2020 Draft and their potential impact on foreign investment in Chinese listed companies.