A-share companies convertibles refinancing heating up Regulatory "supporting the good and restricting the inferior" to prevent blind cross-border investment

Since the release of the new regulations on refinancing, the A-share convertible bonds market has sparked a new wave of issuance. According to statistics, after the release of the new regulations on refinancing, as of now, 17 companies have announced plans to issue convertible bonds, with a total planned fundraising amount of nearly 22.5 billion yuan. The number of issuing companies and the planned fundraising size have both increased by over 70% compared to the same period last year. The number of plans with fundraising amounts exceeding 1 billion yuan, such as Zhongke Shuguang and Zhongchuang Zhiling, has significantly increased. Journalists have noted that after the release of the new regulations on refinancing, two prominent features have emerged in the A-share convertible bonds financing: the proportion of companies listed on the STAR Market and the Growth Enterprise Market has significantly increased, and funds are flowing faster to new productive forces; the review of convertible bonds financing has significantly accelerated, while regulatory authorities are strictly guarding against blind cross-border investments and emphasizing the adequacy of information disclosure. Market participants interviewed by reporters have expressed that the combination of the new refinancing regulations with the advantages of convertible bonds, such as "bond floor protection" and "stock flexibility," has ignited the enthusiasm for corporate bond issuance in the near term. Long-term convertible bond refinancing will gradually return to rationality, complementing other refinancing tools to meet the diverse financing needs of different companies.