China moves to boost foreign investment in domestic tech companies

BEIJING (Reuters) – China published measures on Friday aimed at promoting overseas investment in its technology sector, in a latest bid to attract foreign investors amid signs some are considering shifting away from the world’s second-largest economy.

China will support overseas institutions to issue yuan bonds in the country, and also encourage tech companies, including foreign-invested ones, to raise money via bond issuance, the commerce ministry said in a statement.

The government will also facilitate foreign investment in Chinese tech firms via an inbound investment scheme, QFLP, and will “efficiently” approve applications for licences under QFII and RQFII – programmes that allow foreign investment in Chinese stocks and bonds.

The ministry added that China would relax restrictions on foreign strategic investments in Chinese listed firms.

The measures come as China strives to shore up confidence among overseas investors amid a slowing economy and geopolitical tensions.

Chinese President Xi Jinping has also called for an unleashing of “new productive forces”, underscoring the urgency for “quality” growth through technological breakthroughs and innovation.

The measures were jointly published by 10 government agencies that also include the central bank and China’s securities and forex regulators.

(Reporting by Ethan Wang, Samuel Shen, Ella Cao and Ryan Woo; Editing by Jan Harvey and Mark Potter)

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