China Tightens Rules for Foreign Stock Listings


China is putting the clamps on foreign stock listings for companies in sectors where the government wants to limit foreign investment, such as technology.

It said that foreign ownership can’t exceed 30% in these companies, and no single investor can have more than 10%. Foreigners also are barred from management positions. The rules are effective Jan. 1.

China has been tightening overseas listings since the ride-hailing company Didi Global  (DIDI) – Get DiDi Global Inc. Report went public July 30 on the New York Stock Exchange without explicit government permission. The company said earlier this month that it was delisting from the exchange.