Tech this out! China is making a fresh push to attract more overseas companies to its markets.
So, Chinese regulators are loosening the rules.
Now, foreign-flagged businesses can list their shares on the Star Market – as long as they are worth at least a measly $14.29 billion.
Imitation is flattery. China modeled the Star Market after the American NASDAQ exchange in an attempt to attract more foreign tech IPOs.
How Does It Affect My Wallet?
China’s softening stance on foreign capital could be a hint at an imminent trade deal with the U.S. (China’s willingness to align its capital market with the rest of the global financial system is an encouraging sign).
- The U.S. and China recently agreed to a deal to start rolling back tariffs.
China’s new, looser regulations give American companies more room to tap Chinese capital.
Access to Chinese markets is one of the key sticking points of the U.S.’s trade push, so dialing back regulations could open the door to a more comprehensive trade deal.
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