China's securities regulator is seeking public feedback on a package of proposed refinancing rule changes, including plans to raise the ceiling for fast-track small refinancing, as part of efforts to strengthen the capital market's support for innovation-driven companies.
The China Securities Regulatory Commission said on Friday that it is revising refinancing rules for listed companies to enhance the competitiveness and appeal of China's capital market. The public consultation period will run through Aug 2.
A key proposed change is to optimize the fast-track small refinancing mechanism. Under the draft, listed companies on the Shanghai and Shenzhen bourses would be allowed to raise up to 600 million yuan ($88.5 million) through the mechanism, up from 300 million yuan currently, provided the fundraising amount does not exceed 20 percent of net assets.
For Beijing bourse-listed companies, the cap would rise from 100 million yuan to 200 million yuan. For super-large companies with net assets above 10 billion yuan, the ceiling would be lifted to 1 billion yuan.
It also proposes replacing annual shareholders' meeting authorization with shareholders' meeting authorization for such fundraising, so as to improve financing flexibility.
