Domestic enterprises going public overseas will bring more benefits. On May 22nd, Yan Bojin, Chief Risk Officer and Director of the Issuance Supervision Department of the China Securities Regulatory Commission, stated at a press conference of the State Council Information Office that the commission is committed to promoting high-level opening up to the outside world and strongly supporting technology enterprises to make good use of both domestic and overseas capital markets. On May 23, the People's Bank of China and the State Administration of Foreign Exchange issued the Notice on Issues Related to the Management of Overseas Listed Funds of Domestic Enterprises (Draft for Comments) (hereinafter referred to as the Notice) and solicited public opinions. With the successive implementation of a series of policies, the regulatory environment for companies going public overseas has become more transparent, efficient, and predictable. According to data, since the implementation of the "Trial Measures for the Administration of Overseas Issuance and Listing of Securities by Domestic Enterprises" (referred to as the "New Regulations on Overseas Listing Filing") on March 31, 2023, as of May 26 this year, 249 domestic enterprises have completed overseas listing filing. Nearly 90 technology-based enterprises have become an important force for overseas listings, mainly concentrated in fields such as information technology, new energy, and advanced manufacturing. At present, the reserve team for enterprises to go public overseas is still expanding, and high-quality enterprise resources are abundant. According to data disclosed on the official website of the China Securities Regulatory Commission, as of May 23, in addition to confidential and undisclosed companies, there are 168 companies in the filing process. Among them, the status of 133 enterprises is in the supplementary materials, and 35 enterprises have been received. The pace of filing is accelerating, and the new regulations for overseas listing filing are clear. Domestic enterprises that have submitted valid overseas issuance and listing applications but have not obtained approval from overseas regulatory agencies or stock exchanges can reasonably arrange the timing of submitting filing applications and should complete the filing before overseas issuance and listing. With the normalization of overseas listing filing, the pace of filing is accelerating and transparency is increasing. According to data from the official website of the China Securities Regulatory Commission, as of May 26th, 64 companies have received filing notices (including initial public offerings and full circulation) within the year. Between May 12th and 16th alone, 7 companies received filing notices, including leading A-share industry enterprises such as Anjing Food Group Co., Ltd. and Zhejiang Sanhua Intelligent Control Co., Ltd. Among them, Zhejiang Sanhua Intelligent Control Co., Ltd. only took 58 days from submitting the filing on March 11th to receiving the filing notice on May 8th. With the introduction of a series of policies, the fund management system for enterprises going public overseas has become more perfect. For example, in terms of fundraising management and foreign exchange risk management, the relevant provisions of the Notice are more flexible and convenient. The drafting instructions of the "Notice" mention that considering the reasonable demands of enterprises for overseas use, it is clarified that if approval or filing documents have been obtained from the competent departments of development and reform, commerce, etc. before overseas listing, overseas direct investment, overseas lending and other businesses can also be retained. In fact, with the deepening of enterprise globalization strategy layout, new energy and consumer enterprises have the demand to invest and establish factories locally, carry out cross-border mergers and acquisitions, expand global markets, and enhance international competitiveness after going public overseas. For example, CATL plans to invest 90% of the funds raised from the Hong Kong stock market in the construction of the first and second phases of the Hungary project, further enhancing its localized supply capacity. A lawyer specializing in overseas listings reminds that although the "Notice" only applies to domestic enterprises directly issuing and listing overseas, from the perspective of the reform of cross-border fund regulatory compliance system, for domestic enterprises indirectly issuing and listing overseas, sufficient attention still needs to be paid to the policy development and compliance regulatory trends of fundraising management and repatriation in overseas listings. In addition, the Notice intends to simplify the procedures for managing the overseas listing of domestic enterprises. The Notice proposes that, except for repurchases by listed companies and increases in holdings by domestic shareholders, the registration process for overseas listings of domestic enterprises will be adjusted from being handled by the State Administration of Foreign Exchange to being directly handled by banks. An industry insider stated that the adjustment of overseas direct listing registration to bank direct processing and other requirements have been piloted in 12 places including Beijing, Shanghai, and Guangdong in the early stage. The pilot operation has been smooth and the conditions for promotion are mature nationwide. From the requirements of the supplementary materials for overseas issuance and listing filing announced by the China Securities Regulatory Commission, common issues focus on equity structure or equity structure, shareholder information, corporate governance, and standardized operation. However, in terms of cross-border fund regulation, whether it complies with regulations on foreign investment management, foreign exchange management, taxation, etc., and whether it complies with the requirements of the "Regulations on Foreign Investors' Mergers and Acquisitions of Domestic Enterprises" regarding cross-border share swaps, etc., have been frequently mentioned. Currently, Hong Kong stocks have become the mainstream choice for many companies to go public overseas. From the perspective of the proposed listing on the stock exchange, among the 168 companies currently undergoing registration, 127 companies are planning to list on the Hong Kong Stock Exchange Limited, accounting for over 70%. From the perspective of declaration types, 83 companies plan to go public directly overseas, 76 companies plan to go public indirectly overseas, and 9 companies plan to go public completely. This is closely related to the significant improvement in liquidity of Hong Kong stocks. According to the official website of the Hong Kong Stock Exchange, the average daily trading volume of the Hong Kong securities market in the first four months of 2025 was HKD 250.4 billion, an increase of 144% from HKD 102.5 billion in the same period last year. Southbound funds are also accelerating their influx into Hong Kong stocks. According to Wind Information data, as of the close of May 26th, the net inflow of southbound funds into Hong Kong stocks during the year has reached HKD 621.36 billion, far exceeding the same period last year. With the help of southbound funds, Hong Kong stocks have continued to rise, and as of May 26th, the Hang Seng Index has increased by about 16.06% for the year. Since the beginning of this year, healthcare, technology, and optional consumer goods have been the three best performing sub sectors in the Hong Kong stock market, indicating that investors have a relatively high interest in these types of assets. Moreover, institutions are increasingly interested in cornerstone investors, and the interest in international long-term funds is also higher than before. ”Shen Ge, Co Head of Global Investment Banking at UBS Securities, said. With more domestic companies going public in Hong Kong, it has also brought more vitality to the Hong Kong IPO market. Taking "A+H" stocks as an example, according to Wind Information data, as of May 26th, there were a total of 154 "A+H" stocks. Many of them are leading enterprises with a market value of billions of Hong Kong dollars. Meanwhile, since the beginning of this year, in addition to the 4 A-share companies that have successfully listed in Hong Kong, there are also 49 A-share companies that have officially announced their listing in Hong Kong. (New Society)