State Council Issues Opinions on Further Optimizing Market Environment for Mergers and Restructuring of Enterprises


The Opinions contain major targets and specific measures for further optimizing the market environment for mergers and the restructuring of enterprises. The Opinions indicate that qualified enterprises may raise capital by way of issuing shares, corporate bonds, debt financial instruments of non-financial enterprises, convertible bonds, etc. In addition, the Opinions allow qualified enterprises to issue preference shares or to privately place convertible bonds, which serve as modes of payment for mergers and the restructuring of enterprises.

According to the Opinions, where a listed company issues shares for the purpose of mergers, the lower limit for the quantity of shares issued is no longer required and where a listed company acquires a non-affiliated company, such listed company is no longer mandatorily required to make a performance commitment.


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