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China Proposes New Refinancing Rules for Listed Firms

BEIJING, July 3 (Reuters) - 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.

Reporting by Yukun Zhang ​and Ryan Woo Editing by David Goodman

Source: Reuters


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