BEIJING, Oct. 30 (Xinhua) -- China Securities Regulatory Commission (CSRC), the sector regulator, decided to amend significant asset restructuring related information disclosure and format requirements for listed companies to facilitate their restructuring, reported Xinhua Finance on October 27.
CSRC announced the move on October 27, saying that the amendment mainly involves conditional extension of valid period of accounting documents of listed companies which issue shares to finance their restructuring and determination of related supportive measures.
Under specific circumstances, the valid period of accounting documents for listed companies' restructuring to be funded by stocks issuance can be prolonged appropriately on basis of a 6-month period and the extended periods are adjusted from no more than one month to three months at maximum, according to CSRC announcement.
CSRC took the move to help reduce restructuring costs and accelerate restructuring process of listed companies so as to better support their development of higher quality and competitiveness improvement.
Meanwhile, CSRC requires additional disclosure by listed firms and related intermediaries when the periods between ending dates of the audited financial reports of trading targets and dates of disclosure of the restructuring reports submitted to CSRC for registration are longer than seven months.
Recent years, CSRC deepened continuously the market-oriented reform of merger and acquisition (M&A) sector and leveraged via multiple measures the function of capital market as a main channel to boost corporate M&A activities.
In the past three years, listed companies in China disclosed about 3,000 M&A deals on average annually and a batch of demonstrative and influential M&A programs emerged to contribute to resources distribution optimization and serving building of a modern industrial system.
In the future, CSRC planned to continue to optimize the supervision mechanism over M&A sector, map out privately placed convertible bonds-financed restructuring rules, improve the "small sum and fast" review mechanism, and well implement the inclusive policies for valuation of listed sci-tech companies with light assets to create a better environment for the M&A market. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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