ECONOMY

Red Chip Boon

China’s top securities regulator has adjusted the threshold for innovative red chip companies, or companies registered overseas but operating in the Chinese mainland, eligible to seek listing on the domestic market under a pilot scheme.

The new requirement will allow overseas-listed innovative red chips that have a capitalization of 20 billion yuan ($2.83 billion) or above and possess self-developed, world-leading technologies, innovative strengths and strong positions in their industries to apply for domestic listing, said the China Securities Regulatory Commission (CSRC) on April 30.

Previously, for red chip companies that are already listed overseas, only those with a capitalization of no less than 200 billion yuan ($28.3 billion) were eligible for the pilot