Chinese regulator introduces restrictions on listings for certain sectors

Channel funding

The China Securities Regulatory Commission is looking to restrict companies in certain sectors from listing on the country’s main stock exchanges.

The regulator has created a ‘red' and ‘yellow' light system and has told bankers that companies within "red light" sectors will be off-limits to equity financing in Shanghai and Shenzhen and cannot IPO. The "red light" sectors are: Food and beverage chains, alcohol makers, covid prevention-related businesses, education businesses, funeral businesses and religious businesses. BlackRock Investment Institute: Do not blindly buy the dip "Yellow light" sectors, including apparel and home appliance businesses, will undergo heavy scrutiny and requests could be rejected if their growth rel...