During its weekly meeting, a CSRC spokesman said that the securities regulator revised and issued two rules on listed companies' financing activities. The first adjustment is to require listed companies to clarify the use of raised funds to supplement working capital and debt repayments. Funds raised by the newly issued shares either in the open market or through private placements can be fully used to supplement working capital and repay debt. Funds raised via other methods cannot exceed 30% of raised funds. The second revised rule is to adjust the time limit for refinancing. For listed companies whose previously raised funds have been almost depleted, their applications for additional issuance and allotment will not subject to an 18-month financing restriction. The minimum time gap to begin refinancing, however, will be six months.
CSRC made administrative penalties for four insider trading cases involving several companies. The spokesperson said that the risk of insider trading seriously infringes on fair rights for an investor to access information about listed companies. For such parties who have gained profits via illegal insider insider information, they will be severely punished. CSRC will continue to strengthen law enforcement and consistently crack down on insider trading violations.