Chinese shares close lower Friday

Chinese stocks closed lower Friday, with the benchmark Shanghai Composite Index down 0.25 percent to 3,997.56 points.

The Shenzhen Component Index closed 0.36 percent lower at 13,404.06 points.

China's financial authorities have released regulations to optimize fund management requirements for domestic companies listed overseas.

The regulations, effective from April 1, 2026, were jointly released by the People's Bank of China and the State Administration of Foreign Exchange to further improve the convenience of cross-border financing.

The new regulations align the management standards for funds in both domestic and foreign currencies. Proceeds from overseas listings, share reductions or transfers can be repatriated in either foreign currency or Chinese currency renminbi, simplifying their utilization.

Regarding the full circulation of H-shares, the new regulations allow listed companies to pay dividends to domestic shareholders in renminbi in China, streamlining the distribution process.

Regulated by Chinese law, H-shares are shares of enterprises incorporated in the Chinese mainland that are listed on the HKEX.

The new regulations also simplify procedures for listing registrations, share increases and decreases, buybacks, delistings, fund transfers and account usage, improving operational efficiency for businesses and better supporting their overseas expansion and the growth of the real economy.