Member Article

On November 1, 2024, the Ministry of Commerce of the PRC ("MOFCOM") and five other administrative authorities issued revisions to theMeasures for the Administration of Strategic Investment in Listed Companies by Foreign Investors(the "Measures"), which make significant changes to the original version promulgated in 2005. As revised, the Measures lower the thresholds for foreign investment with respect to the scope of investors, asset requirements, investment methods, payment methods for consideration, shareholding ratios, and lock-up periods. The Measures are conducive to further expanding the channels for foreign investment in the securities market, unleashing the potential for attracting investment through strategic investment channels, encouraging foreign investment to conduct long-term and valued investments, and facilitating A-share listed companies to issue shares to foreign investors for mergers and acquisitions. The revisions to the Measures will come into effect on December 2, 2024. In this article, we present our insights into significant aspects of these revisions.