(FT) Chinese tech firms operating under the so-called variable interest entities are targeted in a new blacklist by Beijing seeking to limit the influence of foreign investors.
VIEs have, for decades, been used by Chinese tech firms that include Tencent and Alibaba to raise foreign capital, with the new move now seen to block external funding and listing.
It is not clear the extent of the list of firms targeted in the blacklist, with the current VIEs operating in the sensitive sectors. The new rules are not expected to apply to existing entities.
The new rules are expected to be published as early as this month, with the list also dependent on how Washington handles similar limits placed on Chinese firms listed in New York.
The latest move happens amid Chinese crackdowns on the tech sector, with the regulators accusing the firms of engaging in anti-monopoly tactics. China had, on Sunday, refuted claims of blacklisting VIEs from foreign listings.
79% of the 241 New York listed Chinese companies used VIEs to make a debut, becoming a blow to other firms seeking to use a similar route to list overseas.
Hang Seng Index is currently up +0.055%, USDCNY is down -0.29%.
