Fearful that control over mineral resources might slip into foreign hands, China has increased reporting requirements for mining firms planning to list overseas. Both foreign investors and Chinese firms with exploration activities in China must report any listing plans to the Ministry of Commerce and the Ministry of Land and Resources, if the plans involve any exploration operations in China, the China Securities Journal said on Monday.

    "I think they worry about Chinese assets being siphoned out of the country through listings," said an executive with a foreign metals company. "Even if the owner is Chinese, they might have a Hong Kong or Bermuda-based company, and an overseas passport. Then you do a joint venture with yourself and gradually shift assets out, or a listing and after a while it's in foreign hands."China's mining policy is torn between encouraging foreign investment, especially for remote or difficult deposits, to ensure the country gets the minerals it needs, and limiting that investment to avoid losing control over its resources. Foreign investors should apply for exploration certificates before starting operations.

    They should also report to the authorities every March on the operations, tax and fee payments, environmental protection, land usage and results of annual inspections, the regulation said. The new regulation takes effect Aug. 20.