China considers tighter rules for companies listing overseas

Beijing’s trade surges as global demand recovers

China’s securities regulator is weighing tighter rules for companies seeking to list in Hong Kong or overseas, a move that could hit technology firms already smarting from months of clampdowns, according to people familiar with the matter.

The China Securities Regulatory Commission is considering proposals that would require firms seeking initial public offerings outside mainland China to submit listing documents to ensure they’re compliant with local laws and regulations, the people said. The scrutiny would also seek to prevent any leaks of sensitive data that might be of national security interest, the people added, requesting they not be identified as the matter is private.

The discussions are preliminary and could be subject to change.

When asked if it was considering such changes, the CSRC issued a brief denial without elaborating. The heightened regulatory

China’s exports rose more than expected in April, suggesting its trade outperformance could last longer than expected this year, fuelled by global fiscal stimulus. Exports grew 32.3 per cent in dollar terms in April from a year earlier, the customs administration said on Friday, exceeding the 24.1 per cent median estimate ina Bloomberg survey of economists. Imports climbed 43.1 per cent, a sign of strong domestic demand and soaring commodity prices, resulting in a bigger-than-expected trade surplus of $42.85 billion for the month.

concerns come as the US tightens restrictions on Chinese firms listed on its exchanges, with legislation that requires the companies to allow inspectors to review their financial audits.