(IBT) China Securities Regulatory Commission has disowned reports saying it seeks to block variable interest entities from foreign funding and listing.
The Chinese oversight authority says companies using the VIEs can still issue IPOs in Hong Kong as long as they adhere to the regulation.
The comments by the Chinese regulator comes after a Bloomberg report said draft rules are targeting to close the gap already used by firms such as Alibaba to list overseas and seek funding.
China’s move was reportedly aimed at restricting foreign investors’ influence on the domestic tech firms, in a move widening Beijing’s crackdown on the sector.
The reports come after China’s ride-sharing giant Didi Chuxing said it had started New York delisting as pressure from Beijing mounted.
Hang Seng Index is up +0.055%, USDCNY is down -0.35%.
