China: Financial watchdog announces more lenient M&A rules

Authorities in China are hoping to encourage more mergers and acquisitions by relaxing rules for companies to buy, sell or swap assets, say reports.

China’s Securities Regulatory Commission announced Friday that listed firms will now longer need its approval when engaging in M&A activity as long as they are not conducting back-door deals. Reports say the rules will also allow the markets to have further influence in the pricing of new listed shares to reflect demand.

Further, the nation will also allow companies to fund M&A deals with more varied financing instruments including preferred stocks.

While the regulator released the proposed rule changes on Friday as a draft, reports say the final regulations will not likely sway from the original proposal.

Full content: Economic Times of India

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