CITIC Securities: Three major exchanges to synchronize optimize refinancing, leading investment banks expected to benefit.

CITIC SEC released a research report stating that the optimization of this round of refinancing measures has significantly improved its policy coverage and market synergy. Unlike previous reforms that focused mainly on specific sectors such as the science and technology innovation board, this time the Beijing Exchange, Shanghai Exchange, and Shenzhen Exchange simultaneously introduced a package of measures, forming a multi-level, market-wide coordinated reform pattern. In terms of specific directions, the measures precisely focus on two core groups: one is high-quality listed companies with market representation and standardized governance, supporting their development of a "second growth curve" through optimized audits; the other is technology innovation enterprises at different stages of development, meeting their reasonable financing needs through inclusive arrangements. This design that supports the growth of mature high-quality enterprises while also considering the growth of innovative small and medium-sized enterprises fully embodies a systematic thinking of supporting both excellence and technology, giving equal consideration to large and small enterprises, and is an important practice to improve the capital market's investment and financing functions and promote the coordinated development of investment and financing. Regarding the investment theme, during the "13th Five-Year Plan" period, China's economic structural transformation and deepening financial system reforms resonate simultaneously, opening up broad strategic depths for securities companies' investment banking businesses. CITIC SEC recommends focusing on securities companies with strong investment banking capabilities and abundant project reserves. Key points by CITIC SEC are as follows: Event: On February 9, 2026, the Shanghai and Shenzhen Stock Exchanges announced the optimization of a package of refinancing measures. Our comments on this are as follows: Background: Simultaneous announcements by the three major exchanges expand the coverage. On June 18, 2025, the China Securities Regulatory Commission issued the "Opinions on Setting up a Science and Technology Growth Board on the Science and Technology Innovation Board to Enhance Institutional Inclusiveness Adaptability," explicitly proposing to "enhance the convenience of refinancing and optimize the criteria for identifying strategic investors." On January 16, 2026, at the China Securities Regulatory Commission's 2026 System Work Conference, the China Securities Regulatory Commission clearly stated the need to "enhance the inclusiveness and adaptability of the multiscale equity market, initiate the implementation of deepening the GEM reform, continue to promote the implementation of the Science and Technology Innovation Board reform, enhance the convenience and flexibility of refinancing, promote the high-quality development of the Beijing Stock Exchange, and the New Third Board." The optimization of the refinancing measures this time, simultaneously announced by the three major exchanges, implements and expands the previous regulatory requirements for serving high-quality enterprises, supporting technological innovation, and improving financing efficiency. Principles: High degree of consistency, focusing on supporting excellence and technology innovation. All three exchanges proposed the following four principles: adhere to goal orientation and problem orientation, support excellence and limit mediocrity, support technological innovation, and strengthen risk prevention and supervision while emphasizing high-quality development, and seek progress in stability. We believe that the three major exchanges following top-level design, high level of coordination, and unified deployment facilitate better resource allocation guidance. Main content: Under strong risk prevention and supervision, efforts are made to enhance the inclusiveness and flexibility of refinancing for technology innovation enterprises and high-quality enterprises, encouraging second growth curve businesses. Firstly, further support for the innovative development of high-quality listed companies. For high-quality listed companies with operational governance and information disclosure norms, representing the market and having market recognition, the optimization of refinancing audits will further enhance the efficiency of refinancing. Throughout the process, the principle of selecting the best and avoiding the mediocre will be adhered to. Supporting high-quality listed companies to raise funds for ShenZhen New Industries Biomedical Engineering, new formats, and new technologies with synergistic integration effects with their main business, investing in second growth curve businesses, while strictly guarding against blind cross-border investments and diversified investments. The expressions of the three exchanges are not significantly different. Secondly, enhancing adaptability and inclusiveness for technology innovation enterprises. All three exchanges explicitly allow listed companies experiencing decline to raise funds reasonably through competitive bidding, issuing convertible bonds, and other means while requiring that raised funds must be invested in their main business. At the same time, all three provide support for technology enterprises that have not yet made a profit based on the profit standards. This reflects a common policy inclusiveness. However, there are differences in specific implementation: the Shanghai and Shenzhen Stock Exchanges explicitly propose the optimization arrangement of the interval period, saying that "if the previously raised funds have been basically used or the investment direction has not changed, a new round of financing can be initiated after the funds have been in place for at least 6 months," and mention the study and formulation of recognition criteria for "light asset, high research and development investment" for main board listed companies, while the Shenzhen Stock Exchange clearly relaxes the money-raising proportion limit for enterprises that meet the criteria, displaying a fine design for the financing pace and qualification recognition of mature market companies. The Beijing Stock Exchange's expression is more focused on principle support, not clearly stating interval standards, which aligns with its market positioning of serving innovative small and medium-sized enterprises, emphasizing overall adaptability support for early-stage technology companies while maintaining regulatory flexibility. Thirdly, efforts to enhance the flexibility and convenience of the refinancing mechanism. All three exchanges require listed companies to briefly explain the previous use of raised funds and future plans when disclosing refinancing proposals and adjust the requirement for the "basic use of previous raised funds" to the declaration stage; they all allow direct quotation of publicly announced information in refinancing application materials to avoid duplicate disclosure and reduce compliance costs. All propose to optimize the list of simplified procedures. The Beijing Stock Exchange additionally states that if financial data is updated during the auditing period such as the annual report or semi-annual report, the updated content can be directly referenced. Fourthly, strengthening supervision throughout the refinancing process. All three exchanges have established a mechanism to prevent "illness-bearing declaration" in the disclosure of proposals and emphasize the solidification of responsibilities of listed companies and intermediary institutions, strengthening supervision of the use of raised funds, and increasing penalties for violations during and after the event, reflecting a shared strict regulatory philosophy. Risk factors: Unexpected decline in stock and fund trading volume; IPO and refinancing tightening beyond expectations; unexpected decline or increased volatility in the secondary market; exposure to customer credit risks; company's strategic execution falling short of expectations; capital market reforms falling short of expectations. Investment strategy: The optimization of this round of refinancing measures has significantly improved its policy coverage and market synergy. Unlike previous reforms that focused mainly on specific sectors such as the science and technology innovation board, this time the Beijing Exchange, Shanghai Exchange, and Shenzhen Exchange simultaneously introduced a package of measures, forming a multi-level, market-wide coordinated reform pattern. In terms of specific directions, the measures precisely focus on two core groups: one is high-quality listed companies with market representation and standardized governance, supporting their development of a "second growth curve" through optimized audits; the other is technology innovation enterprises at different stages of development, meeting their reasonable financing needs through inclusive arrangements. This design that supports the growth of mature high-quality enterprises while also considering the growth of innovative small and medium-sized enterprises fully embodies a systematic thinking of supporting both excellence and technology, giving equal consideration to large and small enterprises, and is an important practice to improve the capital market's investment and financing functions and promote the coordinated development of investment and financing. Regarding the investment theme, during the "13th Five-Year Plan" period, China's economic structural transformation and deepening financial system reforms resonate simultaneously, opening up broad strategic depths for securities companies' investment banking businesses. It is recommended to focus on securities companies with strong investment banking capabilities and abundant project reserves.