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The proceeds raised by listed companies that are provisionally idle may be
invested in products that: (i) are at a high safety level and satisfy the
capital guarantee requirements, and the product issuing entity is able to
provide an undertaking of capital guarantee; and (ii) has good liquidity, and
may not affect the normal operation of the investment plan for the proceeds. The
products that the proceeds are invested in may not be pledged. The settlement
account dedicated for an investment product (if applicable) may not contain
funds other than the proceeds, nor may it be used for other purposes. Listed
companies that open or cancel a settlement account dedicated for an investment
product shall file a record with the stock exchange in a timely manner and make
an announcement thereon (Article 7).
Idle proceeds allowed to be used to purchase investment products.
Promulgated: December 19 2012
Effective: as of date of promulgation
Main contents: The proceeds raised by listed companies that are provisionally idle may be invested in products that:
(i) are at a high safety level and satisfy the capital guarantee requirements, and the product issuing entity is able to provide an undertaking of capital guarantee; and
(ii) has good liquidity, and may not affect the normal operation of the investment plan for the proceeds.
The products that the proceeds are invested in may not be pledged. The settlement account dedicated for an investment product (if applicable) may not contain funds other than the proceeds, nor may it be used for other purposes. Listed companies that open or cancel a settlement account dedicated for an investment product shall file a record with the stock exchange in a timely manner and make an announcement thereon (Article 7).
Alternatively, idle proceeds may be temporarily used as supplementary liquid funds. Such funds may only be used for the production and operations related to the company's main line of business, and may not be used through direct or indirect arrangements for the placement or purchase of new shares, or trading of shares, the derivatives thereof or convertible corporate bonds. The maximum term of a single batch of supplementary liquid funds may not exceed 12 months (Article 8).
The portion of net proceeds actually raised by the listed company that exceeds the amount of proceeds planned to be raised may be used for permanent supplementary liquid funds and the repayment of bank loans. The aggregate amount every 12 months may not exceed 30% of the total amount of excess proceeds (Article 9).
Repealed legislation: Circular on Further Regulating the Use of Proceeds of Listed Companies, Feb 28 2007, CLP 2007 No.3 p.9
China Securities Regulatory Commission, Regulatory Guidelines for Listed Companies No.2 -- Regulatory Requirements in Respect of Management and Use of Proceeds Raised by Listed Companies
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Abstract (summary)
Full Text
Promulgated: December 19 2012
Effective: as of date of promulgation
Main contents: The proceeds raised by listed companies that are provisionally idle may be invested in products that:
(i) are at a high safety level and satisfy the capital guarantee requirements, and the product issuing entity is able to provide an undertaking of capital guarantee; and
(ii) has good liquidity, and may not affect the normal operation of the investment plan for the proceeds.
The products that the proceeds are invested in may not be pledged. The settlement account dedicated for an investment product (if applicable) may not contain funds other than the proceeds, nor may it be used for other purposes. Listed companies that open or cancel a settlement account dedicated for an investment product shall file a record with the stock exchange in a timely manner and make an announcement thereon (Article 7).
Alternatively, idle proceeds may be temporarily used as supplementary liquid funds. Such funds may only be used for the production and operations related to the company's main line of business, and may not be used through direct or indirect arrangements for the placement or purchase of new shares, or trading of shares, the derivatives thereof or convertible corporate bonds. The maximum term of a single batch of supplementary liquid funds may not exceed 12 months (Article 8).
The portion of net proceeds actually raised by the listed company that exceeds the amount of proceeds planned to be raised may be used for permanent supplementary liquid funds and the repayment of bank loans. The aggregate amount every 12 months may not exceed 30% of the total amount of excess proceeds (Article 9).
Repealed legislation: Circular on Further Regulating the Use of Proceeds of Listed Companies, Feb 28 2007, CLP 2007 No.3 p.9
( (c) Euromoney Institutional Investor PLC Mar 2013)
Indexing (details)
Location
Classification
Title
China Securities Regulatory Commission,
Regulatory Guidelines for Listed Companies No.2 -- Regulatory Requirements in
Respect of Management and Use of Proceeds Raised by Listed Companies
Author
Publication title
Pages
n/a
Publication year
2013
Publication date
Mar/Apr 2013
Year
2013
Place of publication
London
Country of publication
United Kingdom
Publication subject
ISSN
10126724
Source type
Trade Journals
Language of publication
English
Document type
News
ProQuest document ID
1327049805
Document URL
http://libproxy1.nus.edu.sg/login?url=http://search.proquest.com/docview/1327049805?accountid=13876
Copyright
( (c) Euromoney Institutional Investor PLC
Mar 2013)
Last updated
2013-04-25
Database
ABI/INFORM Complete
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