A vehicle made by NIO, an electric car manufacturer, is seen outside the New York Stock Exchange (NYSE), September 12, 2018, in New York City.According to a source familiar, China will allow Chinese companies to remain public in the U.S. provided they comply with listing requirements.Investor concerns have been raised by a series of regulatory actions taken in recent weeks. They suggest that Beijing may be trying to stop foreign capital from reaching Chinese assets.According to the regulator, cross-border stock listing can also be done using the variable interest entity structure. It is a legal structure that allows international investors access shares of Chinese companies in America.Although the regulator acknowledged the structure was vital for companies seeking foreign capital, he said that it would need to be modified if national security concerns arise. The source requested anonymity because of the sensitive nature of the matter.According to a source, Vice Chairman of China Securities Regulatory Commission Fang Xinghai met with top investment banks via virtual meeting on Wednesday. This meeting was held after days of sharp selling of Chinese stocks due to fears of Beijing's increased regulatory crackdown.
