The Chinese Government Issued The "Measures For The Management Of Strategic Investment In Listed Companies By Foreign Investors"

To facilitate strategic investment by foreign investors in Chinese listed companies, the investment threshold has been reduced in five aspects:

First, allowing foreign natural persons to make strategic investments. Foreign natural persons are included in the category of foreign investors, permitting them to make strategic investments in listed companies.

Second, relaxing the asset requirements for foreign investors. To facilitate and promote the introduction of more long-term funds into listed companies, the asset requirements for non-controlling foreign investors have been reduced. If a foreign investor does not become the controlling shareholder of the listed company after making a strategic investment, their asset requirement is lowered to a total actual asset value of no less than 50 million USD or managed actual asset value of no less than 300 million USD; if becoming the controlling shareholder, the requirement remains that their total actual asset value must be no less than 100 million USD or managed actual asset value of no less than 500 million USD.

Third, adding the method of tender offer as a form of strategic investment. Allowing foreign investors to make strategic investments through tender offers.

Fourth, for strategic investments made through private placements or tender offers, allowing the use of shares in offshore unlisted companies as payment. For strategic investments made through private placements or tender offers, cross-border share swaps using equity in offshore unlisted companies are permitted.

Fifth, appropriately reducing the requirements for shareholding ratio and lock-up period. The shareholding ratio requirement for strategic investments made through private placements is canceled, and the shareholding ratio requirement for strategic investments made through agreement transfers or tender offers is reduced from 10% to 5%. At the same time, the requirements for the lock-up period will be appropriately relaxed, maintaining the long-term investment nature of strategic investments.