The Shanghai, Shenzhen, and Beijing stock exchanges in China announced a series of measures to improve regulations on new rounds of fundraising, aiming to support high-quality listed companies.
These measures are intended to better promote the innovative development of high-quality listed companies, address the fundraising needs of public science and technology companies in new rounds, enhance flexibility and convenience in additional fundraising, and improve oversight throughout the process.
For companies with strong performance, robust governance, disclosure in accordance with standards, and solid market recognition, the stock exchanges will streamline the review procedures to increase fundraising efficiency.
To meet the needs of science and technology companies, the Shanghai and Shenzhen stock exchanges hold public hearings on criteria for identifying listed companies on the main board that are considered “light-asset companies with high research and development investment.”
Listed companies on the Shanghai, Shenzhen, and Beijing stock exchanges with trading prices below their initial public offering (IPO) price may raise funds through various methods, such as private placements and the issuance of convertible bonds, under the condition that the raised capital must be used only for core business operations.
