International Law

FIE Listings in China: Don?t Hold Your Breath

By Stan

China may allow foreign firms with investments inside the country to list domestically, as part of efforts to boost trader confidence during the global downturn, according to an official.

“We will continue to actively work with relevant authorities to study and complete the policy of allowing foreign-invested companies to list in the country,” Vice Commerce Minister Chen Jian told reporters.

“We will guide high-quality foreign-invested companies to carry out domestic listings at appropriate times,” he said.

The remarks came as figures showed foreign direct investment in China had fallen for an eighth straight month in June as overseas companies grow more cautious due to the crisis.

In other words, we are still studying the issue and will get back to you at some point in the future. Note the AFP headline, “China May Allow Foreign Firms to List.” OK, it’s a straightforward news piece, but I think some perspective on this issue (i.e. likelihood that anything new is actually going on here) would have been helpful.

I can’t remember with any specificity, but I dimly recall when the law was changed to allow for FIE listings. I believe it was several years ago (before 1994?).

In China, one must never mistake a change in the law with a change in political will to implement/enforce that law.

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Full post as published by China Hearsay on July 03, 2009 (boomark / email).