The China Securities Regulatory Commission (CSRC) said on Monday that listed firms should "carefully" consider investor opinion of their refinancing plans.
"Listed firms should, in light of the market conditions and their capital needs, carefully consider the size and timing of refinancing and investor opinion before making decisions on refinancing," a CSRC spokesman said in a statement.
Huge refinancing plans by companies including Ping An Insurance and Shanghai Pudong Development Bank have dampened investor sentiment and triggered panic selling.
Shares in Ping An Insurance have dropped 33.4 percent since it announced on Jan. 21 the issue of an additional 1.2 billion A shares and up to 41.2 billion yuan worth of convertible bonds.
The benchmark Shanghai Composite Index tumbled 4.07 percent on Monday, as market talk of refinancing by China Unicom heightened investor worries that the wave of refinancing exercises would hurt liquidity.
The panic selling led shares in China Unicom, the country's second-largest mobile operator, to plunge 9.98 percent to 10.92 yuan.
The market volatility had clearly increased, due to its self adjustment and the uncertainty of the overseas economic and finance conditions, according to the statement.
The spokesman, however, said refinancing was a major function of the capital market and it was by no means the "vicious" fund-raising lambasted widely by investors.
The CSRC would strictly review refinancing plans after taking into account market conditions and the plans' feasibility and compliance, the spokesman said.
"Investors could accept or reject the refinancing plans by giving full play to the binding function of the market," the statement said.
The spokesman said preparations for the stock-index futures were basically complete and the futures would debut at an appropriate time after further checks and improvements.
The CSRC also pledged to boost cooperation with police and prosecutors and to crack down on market irregularities, including insider trading, market manipulation, and false information disclosures.
The regulator added it had handled 398 market irregularity cases last year and 21 had been transferred to the police.
Source:Xinhua
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