Capital market to aid businesses hit by virus
Chinese companies suffering from the novel coronavirus outbreak can leverage a favorable policy package to get financing from the capital market and tide over their difficulties, according to the top securities regulator on Saturday.
"We will prioritize providing enterprises in places severely affected by the pandemic with efficient, convenient direct financing services," said Li Chao, vice-chairman of the China Securities Regulatory Commission.
The commission will set a fast channel for the issuance of corporate bonds and asset-backed securities by businesses registered in Hubei province and other severely hit areas, as well as those raising funds to contain the pandemic, Li told the China Securities Journal on Saturday.
These businesses will also receive streamlined procedures for stock issuance on the National Equities Exchange and Quotations system, an equity trading platform serving small and medium-sized enterprises .
These measures aim to ease the difficulties of maintaining a steady cash flow faced by affected enterprises, especially small and medium-sized enterprises, Li said.
Domestic financial markets are to reopen on Monday, and Li said CSRC has analyzed and forecasted potential market trends and made reaction plans accordingly.
He made the remarks after China's five top financial regulators, including CSRC, released a slew of measures to support the fight against the new virus.
"Nine of the measures directly concern the capital market, which were all formulated to help contain the pandemic and promote market stability," Li said.
Also among the nine measures are allowing affected listed companies to delay disclosing their annual reports, exempting them from some administrative fees and extending the expiration dates of some transaction permissions.
Risk management regulatory standards of securities firms suffering from the pandemic will also be properly eased, according to the commission.
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