Recently, MOFCOM and five other ministries issued the Measures for the Administration of Strategic Investment in Listed Companies by Foreign Investors. How will the measure facilitate FDI inflow to China? What will MOFCOM do to implement the relevant contents of the measures?

He Yongqian: In order to implement the decision and arrangement of the CPC Central Committee and the State Council on intensifying efforts to attract and stabilize FDI, MOFCOM, China Securities Regulatory Commission, the State-owned Assets Supervision and Administration Commission, the State Taxation Administration, the State Administration for Market Regulation and the State Administration of Foreign Exchange revised the Measures for the Administration of Strategic Investment in Listed Companies by Foreign Investors in the principle of further expanding opening-up, supporting long-term investment and value investing, and preventing and defusing risks. The revised Measures was promulgated on November 1, 2024, and took effect on December 2.

The new Measures reduced the threshold for strategic investment and broadened investment channels, which are mainly reflected in four aspects: first, they allow foreign natural persons to make strategic investment. Second, the requirements on foreign investors' overseas assets are relaxed. Third, they increased investment pathways for tender offer. In the case of a cross-border share swap through private placement or tender offer, foreign investors’ equity in overseas unlisted companies can be considered. Fourth, they relaxed the requirement on the shareholding ratio and shareholding lock-up period. For strategic investment implemented through transfer by agreement or tender offer, the shareholding ratio of foreign investors is reduced from 10% to 5%. For private placement of shares, the requirement on shareholding ratio is eliminated. The shareholding lock-up period for foreign investors has been reduced from no less than three years to no less than 12 months, subject to any new requirements on the lock-up period in the future. These measures will help attract more high-quality foreign investment to listed companies and promote the development of relevant industries and the healthy and stable development of China's capital market. The new Measures also established a coordinated regulatory structure featuring market self-discipline, government supervision and public oversight, which can effectively defuse risks while steadily expanding opening-up.

In the next step, we will strengthen the publicity and interpretation of the measures for local commercial authorities, foreign investors, foreign-funded enterprises and business associations by holding training sessions and roundtables for foreign-funded enterprises. We will work with the China Securities Regulatory Commission and other departments to ensure that the new regulations are implemented as soon as possible. Thank you.