Beijing denied a report that it was looking to plug a loophole used by Chinese tech companies to go public on foreign stock markets.
According to Bloomberg News, China was planning to ban firms from using offshore structures known as variable interest entities VIE, closing a gap that has been used by tech giants such as Alibaba and Tencent in recent decades to avoid restrictions on foreign investment and listings abroad.
The China Securities Regulatory Commission rejected it.
We have noticed the reports. The news is not true, it said in a statement on its website.
A ban would be made by China to clamp down on overseas listings.
Beijing has stepped up scrutiny of major foreign listings after a New York IPO by ride-hailing giant Didi Chuxing went ahead this year despite regulatory concerns.
The investigation into Didi's cybersecurity has been launched by authorities, which have ordered it removed from app stores, and extended probes into other US-listed Chinese companies.
The change is expected to be included in the draft foreign listing rules that could be finalised as soon as this month, according to the Bloomberg report.
As long as they satisfy regulators, companies using VIE will still be allowed to IPO in Hong Kong. Bloomberg said that the rules were still in the draft stage and could be changed.
The government is trying to rein in control of China's influence, and has resulted in a wide-ranging regulatory crack down that has scuppered IPOs and hit big businesses over the past year.