China’s New Guidelines on Overseas Fund Repatriation to Tighten Cross-Border Financing Oversight

China has introduced new rules mandating domestic firms to repatriate funds raised from overseas listings ‘in principle’ to bolster oversight of cross-border financing and manage financial risks. The regulations, set to come into effect on April 1, 2026, will require dedicated capital accounts for cross-border fund settlements and repatriation of funds acquired through shareholder transactions. For H-share “full circulation,” companies will have to utilize either offshore or onshore funds to repurchase their overseas-listed shares. In adherence to the new guidelines, fund transfers associated with H-share “full circulation” will be directed through ChinaClear’s specified accounts, with dividends for mainland shareholders settled…