China's regulator plans to loosen criteria for listed companies' asset restructuring
BEIJING, June 20 (Reuters) - China's securities regulator on Thursday issued draft rules that would scrap profitability requirements in merger and acquisition deals involving listed companies, as part of wider efforts to help corporate restructuring in a slowing economy.
The China Securities Regulatory Commission will also ease funding channels for listed firms to improve their cash flows, and encourage companies in the high-tech sector and new strategic industries to restructure.
"This will further improve the quality of listed companies and boost market vitality," the regulator said on its website, adding that it is soliciting public opinions until July 20.
Chinese companies are in need of more funding channels at a time when the world's second largest economy is slowing as it engages in an escalating trade war with the United States.
(Reporting by Chyen Yee Lee in Singapore and Min Zhang in Beijing)
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