BEIJING/SHANGHAI (Reuters) - China’s securities regulator on Friday scrapped profitability requirements in merger and acquisition (M&A) deals involving publicly traded companies in an effort to facilitate restructuring in a slowing economy.
The China Securities Regulatory Commission (CSRC) also said it would allow flotation of assets in strategically important emerging sectors on Shenzhen's ChiNext .CHINEXTP start-up board.
The policy changes, embodied in revised rules on major restructurings by listed firms, take effect on Friday. CSRC published draft rules in June.
The relaxed rules are aimed at allowing capital markets to play a bigger role in corporate reorganizations and at giving companies easier access to funding.
China’s third-quarter economic growth slowed to its weakest pace in almost three decades as its trade war with the United States hit factory production.
Gross domestic product (GDP) rose 6.0% year on year, slowing from the second quarter’s 6.2% advance.
Reporting by Xiaochong Zhang, Samuel Shen and John Ruwitch; editing by Jason Neely
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