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China to ban loophole used by tech firms for foreign IPOs – Bloomberg News – Metro US

China to ban loophole used by tech firms for foreign IPOs – Bloomberg News

Illustration photo of a computer network cable above a Chinese
Illustration photo of a computer network cable above a Chinese flag

(Reuters) – China is planning to ban companies from going public on foreign stock markets through variable interest entities, closing a loophole used by the country’s tech industry to raise capital from overseas investors, Bloomberg News reported on Wednesday, citing people familiar with the matter.

(Reporting by Sneha Bhowmik in Bengaluru; Editing by Arun Koyyur)