China firms rush on to $10bn share sales as fundraising rules ease amid virus worries


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China firms rush on to $10bn share sales as fundraising rules ease amid virus worries

Over the week that ended on February 23rd, a number of mainland Shanghai-listed Chinese companies were rushing on to issuance of new shares as a part of their fundraising campaign as the Chinese securities and exchange regulators had relaxed fundraising rules last week in order to offset impacts of corona virus-related strains, while the Shanghai-listed Chinese companies had already announced plans to raise as much as $10 billion this week.

Besides, according to a calculation of a press agency and documentations from regulatory filings, more than fifty Chinese homegrown companies including a raft of heavyweights such as Bank of Ningbo alongside the Chinese battery manufacturer Yinghe Technology had revealed in a fresh plan on Thursday (February 20th) to raise a whopping upsum of $10.4 billion or ¥73 billion through private placements of stocks, suggesting more mainland Shanghai-listed companies would more likely to make an attempt to capitalize on an ongoing corona virus mayhem that led to the death of 2,100 people as of February 21st and infected more than 75,000 people in and out of China.

According to the new rules set out by the Shanghai Stock Exchange’s regulatory commission, the companies would be able to sell shares worth of up to 30 per cent of their market cap through private placements from a prior 20 per cent of their share capital, while the number of potential stakeholders for such placements were raised to 35 from 10.