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Banks Push Back Against China’s Plan to Curb Foreign IPOs

  • New rules give China extraterritorial reach over global banks
  • Financial industry body calls for more clarity on violations
Bloomberg business news
WATCH: Global banks are voicing concerns about China’s draft rules that could significantly alter how and where Chinese companies go public outside the mainland. Stephen Engle reports.Source: Bloomberg
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Global banks are raising concerns to Chinese authorities about a plan to tighten rules on overseas stock listings, saying the draft rules are ambiguous and will expand Beijing’s regulatory reach outside the nation’s borders.

The proposals will also drive up costs and stymie dealmaking, the top lobby group for financial firms in Hong Kong said in a letter to the China Securities Regulatory Commission on Sunday, according to people familiar with the matter. The letter called for more clarity on filing requirements and what constitutes violations, the people said, asking not to be named discussing a sensitive subject.