Reuters China is aiming for an offshore IPO structure that will require ministry approval, according to sources. According to individuals familiar with the topic, China’s securities regulator is forming a team to examine Chinese businesses’ plans for international initial public offerings (IPOs), especially those that utilize a corporate structure that Beijing claims has led to misuse. According to Reuters, Chinese companies seeking to list overseas will also need clearance from the relevant ministry, breaking a decades-old agreement that did not require them to obtain formal approval from any Chinese authority. The facts are the first to emerge since Beijing announced on Tuesday that it intends to enhance control of all Chinese companies listed abroad, a major regulatory shift that sparked a sell-off in Chinese stocks listed in the United States./n
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