China Eases Rules for Foreign Investment in Listed Firms

China is set to ease its strategic investment rules for foreign investors in listed companies to attract more long-term overseas capital. The new regulations, effective December 2, allow foreign individuals to invest directly in these firms, which previously was limited to legal entities. Capital requirements have been significantly reduced, with the threshold for non-controlling investors lowered to $50 million from $100 million. Additionally, the rules introduce tender offers as a new investment method alongside existing options like private placements. The minimum shareholding required for initial investments has decreased to 5%, and the lock-up period for shares has been shortened to one year from three. These changes aim to revitalize foreign investment amid China's economic challenges.