"China Continues to Allow Its Companies to List on the US Stock Market"

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] As Chinese authorities have recently intensified regulatory pressure on domestic companies listed on the U.S. stock market, the government is reportedly planning to continue allowing Chinese companies to list on the U.S. stock market.

On the 28th (local time), CNBC reported, citing sources, that a Chinese regulatory official stated that Chinese companies would be allowed to continue listing on the U.S. stock market if they meet certain conditions.

The source said that a senior official from the China Securities Regulatory Commission, China's securities market regulatory body, made this statement during a video conference with major investment banks on the same day.

According to the report, the authorities acknowledged that listing on the U.S. stock market is an important method for attracting foreign capital, but emphasized that certain regulations must be implemented if national security issues arise.

Earlier, as the Chinese government launched antitrust investigations targeting domestic IT companies, foreign investors in major IT companies listed on the U.S. stock market, such as Alibaba and Tencent, grew increasingly anxious, causing the stock prices of these companies to continue declining.

Additionally, last week, the Chinese government announced plans to instruct domestic private education companies to convert into non-profit organizations and to ban both paid capital increases and foreign investments, leading to double-digit drops in the stock prices of Chinese education companies listed on the U.S. stock market.

In response, Goldman Sachs predicted that the stock prices of Chinese education companies listed on the U.S. stock market would fall to about one-quarter of their current levels.

As concerns among foreign investors intensified and stock prices plummeted day after day, it is analyzed that Chinese regulatory authorities attempted to soothe the market during the video conference with securities firms on that day.

At the meeting, the official emphasized that the main purpose of the private education regulation policy is not to prohibit foreign investment but to alleviate the burden of private education expenses on parents.

This content was produced with the assistance of AI translation services.