The China Securities Regulatory Commission ("CSRC") recently issued the Decision on Revising the Administrative Measures for the Issuance of Securities by Listed Companies (Draft for Comments), the Decision on Revising the Interim Administrative Measures for the Issuance of Securities of Listed Companies on the Growth Enterprise Market (Draft for Comments) and the Decision on Revising the Implementing Rules for Private Placement of Shares by Listed Companies (Draft for Comments) (collectively as the "Draft for Comments") for public comments. Comments solicitation has ended by now.
According to the Draft for Comments, the principal changes proposed include: (1) simplifying the issuance conditions and expanding the coverage of refinancing on the Growth Enterprise Market; (2) optimizing the institutional arrangement for non-public issuance, a move to support listed companies in introducing strategic investors; and (3) extending the valid term of the approval document to a proper extent, to make it more convenient for listed companies to determine the gap period between approval and issuance. Among others, the Draft for Comments removes a previous requirement for the public issuance of securities on the Growth Enterprise Market, reading "the asset-liability ratio by the end of the last period shall be higher than 45%"; removes another requirement for private placement of shares on the Growth Enterprise Market, reading "having made profits for two consecutive years"; and adjusts the requirement, reading "the funds raised from the last issuance on the Growth Enterprise Market have been used up basically, and the progress and effect of such use are basically identical with the information disclosed", to be one of the requirements for information disclosure, instead of one of the issuance conditions.
(Source: China Securities Regulatory Commission)
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