China eases M&A rules for listed firms

BEIJING/SHANGHAI: China’s securities regulator scrapped profitability requirements in merger and acquisition (M&A) deals involving publicly traded companies in an effort to facilitate restructuring in a slowing economy. The China Securities Regulatory Commission (CSRC) also said it would allow flotation of assets in strategically important emerging sectors on Shenzhen’s ChiNext start-up board. The policy changes, embodied in revised rules on major restructurings by listed firms, took effect on Friday. CSRC published draft rules in June. The relaxed rules are aimed at allowing capital markets to play a bigger role in corporate reorganisations and at giving companies easier access to funding. China’s third-quarter economic growth slowed to its weakest pace in almost three decades as its trade war with the United States hit factory production. Gross domestic product (GDP) rose 6% year on year, slowing from the second quarter’s 6.2% advance. — Reuters