Key Takeaways:
China will let foreign-funded companies sell shares on its domestic exchanges for the first time, the core of a 15-measure plan to revive foreign investment.
China will allow foreign-funded enterprises to list on its domestic A-share market for the first time, part of a 15-measure action plan approved by the State Council to reverse a multiyear slowdown in foreign direct investment.
"Support eligible key foreign-funded enterprises to list and raise funds in the domestic market," the Ministry of Commerce, National Development and Reform Commission, and Ministry of Finance said in a joint statement Monday, announcing the plan titled "Utilizing Foreign Capital to Stabilize and Promote Optimization."
The measures span five areas including market access, investment convenience, promotion, service guarantees and management optimization. Foreign institutions will gain expanded access to treasury bond futures for risk management and will be permitted to conduct fund advisory businesses. The government also pledged to optimize cross-border data flow management and offer tax incentives for foreign firms that reinvest profits in China.
The package represents Beijing's most aggressive attempt to restore foreign investor confidence since FDI inflows began decelerating amid heightened US-China trade tensions and a slowing domestic economy. If fully implemented, the measures could unlock billions of dollars in new capital formation and deepen China's capital markets by broadening the issuer base beyond domestic state-owned and private enterprises.
A-share listing opens new channel
The IPO provision marks a structural shift. Foreign-invested enterprises have historically been limited to bond issuance or offshore listings in Hong Kong. Opening the domestic IPO pipeline to foreign-owned companies gives Beijing a new tool to retain capital that might otherwise flow to competing Asian financial hubs. China remained the largest trading partner of 13 APEC economies in 2025, with bilateral trade reaching $3.7 trillion, according to Ministry of Commerce data cited at the APEC China CEO Forum.
Foreign financial institutions stand to benefit disproportionately. The plan grants them access to treasury bond futures — a risk-management tool previously reserved for domestic players — and authorizes them to offer fund advisory services. These changes target a persistent complaint among global asset managers that China's onshore derivatives market lacks the depth needed for sophisticated hedging strategies.
The data-flow provisions address another long-standing corporate grievance. The plan encourages free-trade zones and pilot areas to develop sector-specific, field-level data exit lists, potentially resolving months-long delays foreign companies have faced when transferring customer and operational data across borders.
National treatment codified
The plan extends national treatment to foreign firms in government procurement, bidding and consumer-subsidy programs — areas where foreign companies have frequently alleged discrimination. The government said it would strictly honor policy commitments and establish a closed-loop system for resolving operational bottlenecks.
The announcement comes ahead of the fourth China International Supply Chain Expo in Beijing this week, where Beijing will showcase its industrial ecosystem to global executives. Jim Sutter, CEO of the US Soybean Export Council, said at the APEC forum that "stability in the China-US trade environment benefits both sides," reflecting cautious optimism among foreign businesses.
China has signed 24 free trade agreements with 31 countries and regions, including 15 APEC economies. The new measures build on that framework by targeting the specific regulatory frictions that have deterred foreign capital in recent years.
This article is for informational purposes only and does not constitute investment advice.
