18 October 2019

New policies eyed to help SME equity transfers, Xinhua says

The China Securities Regulatory Commission (CSRC) will chalk out and implement a nationwide system for the transfer of equity rights in small and medium-sized enterprises (SMEs), Xinhua news agency cited the State Council as saying Saturday. The system will substantially expand the financing means for SMEs via share transfer, equity financing, bond financing as well as mergers and acquisitions, it said. The CSRC will detail supervision policies for open equity transfers and private placement exercises for non-listed companies with 200 or more shareholders. According to the State Council, there will be no minimum financial and market capitalization requirements for companies to trade on the New Third Board, while a number of exemptions can be granted for companies to switch to the growth enterprise market board or the main board, the report said.

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