Chinese regulators will call on listed companies to disclose fund-raising plans for the year ahead in their annual reports to ease heated market speculation on new share issuance, state-owned newspapers said on Wednesday, citing unnamed authorities.
Listed firms will be urged to include broad financing targets for the following year with their annual results, and then disclose their financing plans by stages as preparations proceed, the China Securities Journal and the Shanghai Securities News reported.
China's benchmark share index .SSEC has slumped since mid-January due in large part to worries about supply pressures from new share issues, including a massive share and convertible bond issue planned by Ping An Insurance (Group) Co (stock code: 601318) that could raise 125 billion yuan ($17.6 billion) and will be put to a shareholder vote later on Wednesday.
Retail investors and fund managers have criticised several recent plans for large share issues, citing a lack of details about their rationale and plans for use of the proceeds. ($1=7.106 Yuan)