From CNBC: 2024-06-21 00:57:05

Chinese authorities announced new policy supporting venture capital to boost IPO approvals amid a slowdown in startup investments. The State Council published high-level measures for promoting the industry’s high-quality development, focusing on technology and exit channels. Challenges include regulatory scrutiny and overseas IPO bottlenecks, impacting investor sentiment in China’s tech market.

To address overseas IPO challenges, Chinese authorities tightened scrutiny and introduced new rules post-DiDi’s US listing. The US also scrutinizes capital going into China and fraud risks. Increased fines and rules for domestic companies listing overseas aim to protect investors and uphold national security. Speeding up IPO processing and support for mainland companies listing overseas are key focus areas.

China aims to develop its domestic stock markets for diverse IPO candidates demonstrating innovation. Capital markets target support for tech development. New policy encourages the establishment of yuan-denominated funds by international investment institutions. The CSRC, led by Wu Qing since February, seeks to drive productivity growth and attract foreign investments in China-focused funds.

Read more: China talks up support for IPOs. Investors are watching the speed of approval