China's revised rules on foreign investors' strategic investment in listed companies will come into effect on December 2, the Ministry of Commerce announced on Thursday.
The revised rules were jointly released on Nov 1 by six government departments, including the Ministry of Commerce and the China Securities Regulatory Commission, in a move to encourage foreign investors to make long-term and value investment in the country. The new rules allow foreign natural persons to make strategic investment in listed companies, a change from the old rules that only allowed foreign legal persons or organizations to make such investments.
Capital requirement is also lowered under the new rules for foreign investors that do not become the controlling shareholders in listed firms. The latest capital requirement for them will be no less than 50 million U.S. dollars in total actual assets or no less than 300 million U.S. dollars in total managed actual assets.
The new rules add tender offers as an extra option to make strategic investment. In the past, the only available options were private placements and share transfer agreements.
"The new rules allow foreign natural persons to make strategic investments and will appropriately relax the requirements for foreign investors regarding their overseas assets. For cross-border share swaps conducted through the options of private placements or tender offers, investors will be allowed to use shares of non-listed overseas companies as consideration shares for acquisition payment. The ratio requirements for the options of share transfer agreements and tender offers will be lowered to 5 percent from the previous 10 percent. The lock-up period for foreign investors' acquired shares will be adjusted from no shorter than three years to no shorter than 12 months. Should the securities market introduce new requirements for the lock-up period in the future, compliance with new regulations will be necessary," He Yongqian, a spokeswoman of the Chinese Ministry of Commerce, said at a press briefing.
These new measures are expected to attract more high-quality foreign investment into listed companies and promote the healthy and stable development of related industries and China's capital market, said He.
New rules on easing foreign strategic investment in listed firms to take effect in December
New rules on easing foreign strategic investment in listed firms to take effect in December
China's push toward a greener future is once again in the spotlight at this year's annual political "two sessions", as lawmakers are reviewing a draft ecological environment code, a significant step toward establishing a comprehensive legal framework for ecological protection.
The draft code was submitted on March 5 to the ongoing fourth session of the 14th National People's Congress (NPC), China's top legislature, for deliberation.
Once adopted, it will become China's second formal statutory code, after the Civil Code, which was adopted in 2020.
The rule of law has been continuously strengthened to support the country's green progress. China already has more than 30 laws related to environmental protection, along with over 100 sets of administrative regulations and more than 1,000 sets of local rules.
The latest legislative move comes amid China's historic gains in ecological conservation over the past decade or so. Championing green development, the country has recorded the world's fastest growth in forest resources and afforestation, led globally in renewable energy development, and achieved one of the fastest national reductions in energy intensity worldwide.
The 1,242-article draft has five chapters, covering areas including pollution control, ecological protection, and green and low-carbon development.
Scholars involved in drafting the legislation say the code goes beyond broad legal principles. It is also designed to address environmental issues that affect people's daily lives.
"Electric vehicles are becoming very common in China. My family has one. We all think it environment-friendly. But have you ever thought about this question: how do we deal with the first generation of EV batteries after they expire a few years later? The same goes for wind turbine blades and solar panels," said Ding Lin, assistant professor of the Renmin University of China.
China's environmental progress has drawn global attention in recent years, from improving air quality to expanding renewable energy. Yet amid geopolitical tensions and economic uncertainty, some observers have questioned whether the country will maintain the same pace of green transition.
"Last year during the COP30, even some friends who are very familiar with China asked me whether China will continue its green development path. I told them we have gradually worked out new policies. We have a very clear direction and goal. In a world full of uncertainties, we are providing the most certainty," said Wang Yi, an NPC deputy from east China's Zhejiang Province and professor of the Chinese Academy of Sciences.
In a country pursuing modernization, taking the time to codify environmental laws sends a clear message: economic growth and environmental protection are not a trade-off to be managed, but a commitment to be upheld. For China, a beautiful environment is not a luxury for the future, it is a right for the present, and a responsibility to the next generation.
"This code reflects China's vision of harmonious coexistence between humanity and nature. It shows how development and environmental protection can move forward together," said Lyu Zhongmei, vice chair of the NPC Environmental Protection and Resources Conservation Committee.
China will accelerate the green transition across the board and cut carbon dioxide emissions per unit of the GDP by a total of 17 percent in the 2026-2030 period, according to a draft outline of the 15th Five-Year Plan (2026-30) for national economic and social development submitted to the NPC for deliberation on March 5.
Chinese lawmakers review draft ecological environment code in major green legislative push
