A package of optimization measures accelerates refinancing for Beijing Stock Exchange companies

Securities Daily reporter Meng Ke

Since the Beijing Stock Exchange (hereinafter referred to as the “Beijing Exchange”) launched a package of optimization measures for refinancings on February 9, the refinancing pace of listed companies on the Beijing Exchange has accelerated markedly. Among them, as of April 7, seven listed companies on the Beijing Exchange have already released announcements related to refinancing via the simplified procedure.

Judging from recent typical cases, on March 26, Kangken Technology Co., Ltd. issued an announcement stating that it plans to seek authorization from the shareholders’ meeting for the board of directors to issue shares to specific parties using the simplified procedure.

On April 1, Hubei Kait Automotive Electronics and Electrical Systems Co., Ltd. disclosed a plan to issue convertible corporate bonds to specific parties. According to the announcement, the total amount of funds to be raised in this offering will not exceed RMB 280 million, mainly for the construction project of an intelligent motor production base.

On April 3, Sichuan Changhong New Energy Technology Co., Ltd. disclosed a refinancing plan, proposing to issue ordinary shares via a competitive bidding offering to specific parties, with funds to be raised not exceeding RMB 903 million. The raised funds will focus on the core track of high-rate lithium batteries, and are expected to further consolidate the company’s leading advantages and risk-resilience in the high-rate lithium battery segment, laying a foundation for expanding market share and strengthening competitive advantages.

When discussing refinancing via the simplified procedure, Chen Li, head of the research institute at Chuan Cai Securities, said in an interview with a reporter from Securities Daily that the dense initiation of simplified-procedure refinancings by listed companies on the Beijing Exchange is mainly because policy optimization has greatly improved the convenience of small, fast financing, significantly shortened the review cycle, and reduced financing costs. This aligns with the funding needs of innovative small and medium-sized enterprises that are small in amount, high in frequency, and urgent. At the same time, enterprise expansion, R&D investment, and business layout have entered a critical stage. Coupled with clearly defined policy direction and improving market expectations, it drives high-quality companies to seize the financing window.

Tian Lihui, a professor of finance at Nankai University, told a reporter from Securities Daily that according to the relevant rules of the Beijing Exchange, simplified-procedure share placements focus on “small and fast.” The financing amount must not exceed RMB 100 million and must not exceed 20% of the company’s net assets. The review timeframe has been greatly compressed, which effectively shortens the financing period and reduces financing costs. In addition, the policy also optimized the negative list for simplified procedures, to a certain extent expanding the scope of applicability, further meeting small and medium-sized enterprises’ financing needs of “small amount, speed, and on-demand.” After the policy window opens, the board of directors of listed companies on the Beijing Exchange quickly initiates authorization—this is a concentrated release of reasonable financing demands under institutional dividends.

In Chen Li’s view, currently, refinancing on the Beijing Exchange shows three major new changes: first, optimization of the scope of simplified procedures, making small-amount share placements more efficient and standardized; second, enhanced institutional inclusiveness, supporting reasonable financing by, for example, science and technology innovation enterprises that have not yet achieved profitability, with the use of funds focusing on main businesses and coordinated new businesses; and third, coordinated review and supervision—requirements for the use of raised funds are clearer, and a “support the better and limit the worse” orientation is even more distinct.

Tian Lihui also believes that the package of optimization measures for refinancings on the Beijing Exchange reflects the policy orientation of “supporting the better and supporting technology,” which helps guide market resources to gather faster in the field of new quality productive forces, and strengthens the institutional foundation for the capital market to serve the high-quality development of the real economy.

Industry insiders point out that the Beijing Exchange is positioned to serve innovative small and medium-sized enterprises. Its refinancing and public issuance form a bridging financing mechanism. On the one hand, it can fully play the functions of the capital market and support small and medium-sized enterprises to grow stronger, better, and larger. On the other hand, it is also beneficial for listed companies to improve their development quality and investment value through refinancings, allowing the broad investing public to share in the growth dividends of innovative small and medium-sized enterprises.