(Yicai Global) Oct. 13 -- The stock market value of foreign strategic investment in the Shanghai and Shenzhen stock exchanges has reached CNY1.35 trillion (USD200.8 billion), and the largest shareholders of more than 100 companies are foreign strategic investors, Li Ming, director of the Listed Company Supervision Department of the China Securities Regulatory Commission, said yesterday.

The State Council of China issued policy guidelines to improve listed company quality on Oct. 5. Li made the above statement at a press briefing held to introduce this new policy.

The document proposes to support domestically listed companies to issue shares and buy high-quality assets overseas, while allowing more qualified foreign investors to invest in domestically listed companies.

The CSRC and other agencies are revising the administrative measures for foreign investors’ investment in Chinese listed companies and have already solicited public comments to further open up and broaden channels for use of foreign capital, Li said. China is gearing up to lower the financial bar for foreign investors, relax the cross-border share swap requirements imposed on domestically listed companies, shorten the lock-up period for foreign investors' holdings after investment, and include foreign natural persons in the strategic investment tableau.

The CSRC has also actively supported listed companies in conducting cross-border mergers and acquisitions. Chinese listed companies have conducted a total of 392 cross-border M&As since 2018, with a total transaction value of CNY465.9 billion, Li added.

The CSRC will cooperate with relevant ministries and commissions to speed up the revision of the strategic investment measures and provide institutional guarantees for China-listed companies to go global through M&As, Li stated. The CSRC will also improve the regulation of cross-border M&As' information disclosure.

Editor: Ben Armour