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China’s securities watchdog to facilitate M&A and financing to ensure done-deals back on track fast and swift
CKN
2020/03/04 09:29:19
2,665

Mar 04, 2020 (China Knowledge) - The China Securities Regulatory Commission (CSRC), the top securities regulator, has said to accelerate the approval process for mergers and acquisitions and facilitate related financing activities, with the purpose of getting listed companies back on their feet swift and fast after weeks of compulsory homestay quarantine. It aims to see the resumption of business activities and production fall after reports of steady containment of the COVID-19 epidemic.

Tapping on the new measures listed companies are allowed to re-work or adjust financing arrangements associated with M&A, so as to take advantage of the recently relaxed re-financing regulations.

Leveraging on the new refinancing schemes, it has recorded a total of 46 listed companies’ applications to increase the quantum of refinancing by Feb 23, of which 12 companies decide to increase financing for the first time. About 22 are under the review by the CSRC, and 18 more are planning to issue ‘lock-up’ offerings.

It is worth noting that, for financing activities of approved M&As, listed companies can adjust the stock price, the number of investors, and the lock-up period; but, are not allowed to increase the sum of money to be raised. Also, the administrative approval for M&A and reorganization is further extended to allow approved licenses valid for a longer period.

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