China's stock exchanges optimize refinancing rules to support innovation

The Shanghai, Shenzhen and Beijing stock exchanges on Monday announced a package of measures to optimize refinancing rules to support high-quality listed companies.

The move aims to better support the innovative development of high-quality listed companies, accommodate the refinancing needs of sci-tech enterprises, enhance the flexibility and convenience of refinancing, and refine oversight throughout the process.

For well-performing companies with standardized governance and information disclosure, as well as strong market recognition, the exchanges will streamline the review process to improve refinancing efficiency.

To address the needs of sci-tech firms, the Shanghai and Shenzhen exchanges have proposed that they will solicit public opinion on the criteria to identify main-board listed companies as "light assets and high R&D investment."

Companies listed on the Shanghai, Shenzhen and Beijing exchanges that are trading below their issue prices may raise funds through such means as private placement and convertible bond issuance, provided that funds raised are used for core business operations.