Equity fund raising rules loosened
8 May 2006
Companies listed on the domestic stock exchanges will be able to raise extra money after the introduction of new regulations, the Wall Street Journal reported. According to new measures implemented by the China Securities Regulatory Commission, secondary issues of stock, convertible bonds and other securities by firms listed in Shanghai and Shenzhen have resumed. Initial public offerings are expected to return shortly. Before the week-long May holiday, the CSRC suggested the ban imposed after a stock sale in June last year may be lifted. Over the past year companies have been encouraged to convert non-tradable state shares into tradable equity.