Investors who own private assets of no less than US$50 million or have assets under management of at least US$300 million have the right to make strategic investments in firms listed on Chinese mainland stock exchanges from December 2, according to a new rule published by the six companies. will be. Government agencies including the Ministry of Commerce and the China Securities Regulatory Commission on Friday.

According to the new rule, people who meet their capital needs for the first time will also be allowed to make strategic investments in Group A companies.

In China, strategic investment means purchasing a share in a company and holding that share for a certain period of time in order to achieve long-term returns.

“If more foreign capital flows into the market to make long-term investments, local investors will be inspired to hold A shares,” said Wang Feng, chairman of Ye Lang Capital, a Shanghai-based financial services group. “This is the latest effort by economic and financial policymakers to encourage foreign capital flows and push the stock market higher.”

The lock-in period (the period during which shares cannot be sold) for foreign strategic investors will be reduced from three years to 12 months under the new rule.