BEIJING, March 11 (Xinhua) -- The new registration-based bond issuance rule has proven effective in easing the financing strain on cash-starved firms, the China Securities Journal reported Wednesday.
Since the country implemented the new rule on March 1, replacing the old approval-based system, 23 companies have registered at stock exchanges, which are expected to raise 191 billion yuan (about 27.44 billion U.S. dollars).
The new rule features simpler issuance terms and streamlined procedures, a boost to corporate bond issuance, said Hu Hengsong, assistant to the general manager of Caida Securities.
In the meantime, the information disclosure system is optimized under the new rule, pushing firms to avoid any potential illegal activities, Hu said.
The registration-based system was listed in China's revised Securities Law, which was adopted by the country's top legislature in late 2019 and went into effect on March 1.