New rules for acquisitions
1 November 2002
The China Securities Regulatory Commission announced that new rules governing the acquisition of domestic listed companies would come into effect on December 1, China Securities Journal reported. The new rules specify requirements for disclosure of deals to shareholders and provide a regulatory basis for acquisitions that should make it easier for them to take place in future.
The CSRC said that all investors, foreign and domestic, would be treated equally under the rules. However, foreign investors will not be allowed to acquire controlling stakes in industries deemed to be of strategic importance to the state and the rules still subject prospective buyers to case-bycase approval by the relevant authorities.