(Yicai Global) July 27 -- China’s capital of Beijing will comb through local Chinese concept stocks that went public in the US and aid those that meet the criteria to return to the mainland A-share and Hong Kong stock markets.

The spread of the Covid-19 pandemic worldwide has greatly impacted these companies’ growth since the start of this year, The Beijing News reported today, citing the city’s financial supervision and administration. Corresponding US oversight has also intensified since Chinese chain Luckin Coffee reported fabricated revenue, and this has also brought China’s concept stocks into short-sellers’ cross-hairs.

The growth of these shares, which are those of companies listed overseas whose assets or earnings have significant activities in the Chinese mainland, and Chinese firms’ future listings in the US have also been hugely affected.

Beijing’s Local Financial Supervision and Administration therefore noted that it will liaise with the China Securities Regulatory Commission and other authorities to craft supporting policies and conduct pilots of new over-the-counter markets or other boards to entice Chinese concept stocks to return to the domestic fold.

The city will also continue to help high-quality companies focusing on science and technology innovation to choose suitable capital markets in China or overseas to achieve their future financing plans.

Many top mainland firms have opted for overseas listings to access foreign capital. They are featured on several major global stock exchanges in London, Hong Kong, Tokyo, Singapore, New York and on the Nasdaq, NYSE MKT and Euronext.

Editor: Ben Armour