CSRC solicits public comments on the "Regulations on Supervision and Administration of Fundraising by Listed Companies (Exposure Draft)"

On January 17, the China Securities Regulatory Commission solicited public comments on the "Regulations on the Supervision of Funds Raised by Listed Companies (Draft for Solicitation of Comments)". The "Regulations" consist of twenty-three articles, emphasizing that raised funds should be used exclusively for designated purposes and core business activities. It specifies the specific circumstances of changes in fund usage and the process requirements for delaying implementation, further regulating the temporary cash management and liquidity supplementation of idle raised funds, as well as the use of excess raised funds. The China Securities Regulatory Commission solicited public comments on the "Regulations on the Supervision of Funds Raised by Listed Companies (Draft for Solicitation of Comments)" in order to thoroughly implement the spirit of the Central Financial Work Conference, further improve the quality of listed companies, and strengthen the supervision of raised funds. Based on the "Guidelines for the Supervision of Listed Companies No. 2 - Supervision Requirements for the Management and Use of Raised Funds of Listed Companies", drafted the "Regulations on the Supervision of Funds Raised by Listed Companies (Draft for Solicitation of Comments)" (hereinafter referred to as the "Regulations"). The "Regulations" focus on enhancing the security and normativity of raised funds, further improving the efficiency of fund utilization, and are now open to public comments. The "Regulations" consist of twenty-three articles, emphasizing that raised funds should be used exclusively for designated purposes and core business activities. It specifies the specific circumstances of changes in fund usage and the process requirements for delaying implementation, further regulating the temporary cash management and liquidity supplementation of idle raised funds, as well as the use of excess raised funds. In addition, the "Regulations" adhere to the strict regulatory concept, clarify accountability clauses, establish connections with higher-level laws such as the Securities Law, Measures for the Administration of Securities Issuance and Listing Sponsorship Business, Measures for the Administration of Information Disclosure by Listed Companies, etc., and promote the normalization of fund management and usage by listed companies through strengthening in-process and post-process supervision, and encourage intermediary institutions to fulfill their duties diligently. Welcome valuable opinions from all sectors of society. The China Securities Regulatory Commission will carefully study feedback from all parties, further revise and improve it, and then publish and implement it in accordance with procedures. Source: China Securities Regulatory Commission official website, edited by GMTEight: Liu Jiayin.