The China Securities Regulatory Commission (CSRC) on Friday proposed changes to rules for refinancing by listed companies, releasing draft revisions it said would help companies to raise capital.
The revised rules would allow eligible companies to carry out multiple share issues via private placement after registering the plan only once, the CSRC statement said.
This would help companies to raise funds quickly when opportunities arise and reduce shocks to the market from large, one-time financing, the regulator said.
The revisions raise refinancing caps for certain smaller financing procedures.
Private placement pricing will be more market-oriented to better protect small investors, the statement said.
The regulator also plans to step up oversight of convertible bond issuance.
China’s stock exchanges in February introduced measures to facilitate refinancing by “high-quality” listed companies to help them to innovate or expand into new businesses.
Reuters
