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Funds obtained by Chinese companies from overseas listings must, in principle, be repatriated to China, strengthening state control over cross-border financial flows, according to regulations adopted by the Chinese authorities at the end of last year.
The regulation was issued on December 26, 2025, by the People's Bank of China and the State Administration of Foreign Exchange and will enter into force on April 1, 2026, according to the official document.
Under the new rules, amounts obtained from IPOs, secondary offerings, or share transfers may be repatriated either in renminbi or in foreign currency, at the company's choice, but repatriation is the basic rule. Funds brought into the country may subsequently be converted into renminbi and used for the companies' domestic needs.
The regulation also provides for the simplification of administrative procedures for banks and firms in the case of overseas listings and subsequent share issuances. Keeping funds outside China is permitted only in exceptional cases, with the approval of the authorities.
The measure is part of Beijing's strategy to strengthen oversight of financial capital and reduce vulnerabilities associated with external flows.
Sources:
- People's Bank of China; State Administration of Foreign Exchange - Joint notice regarding the management of funds derived from overseas listings, December 26, 2025.
- International and regional economic press citing the official document of the Chinese authorities.
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