Private share placements by listed companies in China remained buoyant in the first three months this year despite tightened control on approvals.
During the first quarter, a total of 131 A-share listed companies conducted private share placements, raising more than 497.9 billion yuan (about 72.2 billion U.S. dollars), and 140 companies announced plans for private share placements, with 350.7 billion yuan expected to be raised, investment research firm ChinaVenture said in a research note Monday.
Companies engaged in manufacturing are a major force in the market in terms of fund raising, according to the research note.
The data showed that the private share placement market is stabilizing after brisk transactions in the fourth quarter last year, said the note.
China Securities Regulatory Commission (CSRC) in February released new policies to improve the approval of private share placements by listed companies in terms of deal prices and scales to contain excessive refinancing.
The CSRC criticized certain listed companies for deviating from their main businesses, being engaged in excessive refinancing and investing in unrelated industries.
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