(CNBC) China’s securities regulator has told brokerages it will still allow domestic companies to list in the US as long as they satisfy certain requirements.
The move by the securities regulator follows a series of crackdowns which has raised concerns that the government is committed to blocking foreign investments into Chinese assets.
Beijing has since moved to cool the markets, defending the variable interest entity structure saying it is crucial in attracting foreign capital but would have to be adjusted on national security concerns.
China stopped short of banning the private education sector, after it introduced a policy preventing them from raising capital via the stock market or from foreign investors.
Increased scrutiny by Chinese authorities saw domestic entities listed in the US and China such as Alibaba and Tencent plunge, while tutoring firms also shed double digits.
CSI 300 is up +1.89%, Hang Seng Index is up +3.30%.
