China Unveils Curbs On Foreign IPOs In Restricted Sectors

China will impose new restrictions on offshore listings by firms in sectors that are off-limits to foreign investment, a move that could plug a loophole long used by the country’s technology industry to raise capital overseas.<br />the National Development and Reform Commission and the Ministry of Commerce in a statement says Chinese firms in industries banned from foreign investment will need to seek a waiver from a negative list before proceeding for share sales, .<br />Overseas investors in such companies would be forbidden from participating in management and their total ownership would be capped at 30%, with a single investor holding no more than 10%, according to the updated list effective Jan. 1.