back to article Beijing reverses ban on tech companies listing offshore

The Chinese government has announced that it will again allow "platform companies" – Beijing's term for tech giants – to list on overseas stock markets, marking a loosening of restrictions on the sector. "Platform companies will be encouraged to list on domestic and overseas markets in accordance with laws and regulations," …

  1. Pascal Monett Silver badge
    Big Brother

    Xi Pooh has a big problem

    His country needs capitalism to progress, because communism has amply demonstrated its dismal failure, but Xi hates money and the power that goes with it because he wants to be the only one with power.

    So he enacts decisions destined to beat down any head that rises out of the ranks, which will keep his country's progress hobbled to a rate that he thinks he can manage.

    1. DS999 Silver badge

      Re: Xi Pooh has a big problem

      China is not communist in any meaningful sense today, and hasn't been for several decades. Its problem is that it is authoritarian (and trending even more so every year) and companies have to constantly adapt to conflicting orders from the top. One day they are free to list on foreign exchanges, then an edict comes down saying they are not. They all scramble to comply with that order. Now the order is reversed.

      The problem is they will have a difficult time getting re-listed on foreign exchanges because the exchanges and potential foreign investors in Chinese shares have no reason to be confident the same thing won't happen again. Especially as it appears the reason for the pullback is China's slowing economy - this seems to be an admission that making that change when they did was bad timing, not that it was a bad idea. They will do it again, after corona is in the rearview mirror and their economy is picking up steam.

      Just because they still call themselves "communist" does not make it so, any more than North Korea is a "democratic people's republic".

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