CHENGDU, Feb. 20 (NBD) -- The newly issued regulatory requirements on the regulation of financing behaviors of listed firms requires that there should be an interval of no less than 18 months between two equity offerings of listed companies.

This could effectively prevent listed companies from excessively raising money, said a source with Zhongrong International Trust Co., Ltd. 

Released by the China Securities Regulatory Commission (CSRC), the new regulation is aimed at avoiding speculative financing, protecting legal rights of medium and small investors and better supporting the development of the real economy, CSRC spokesperson Deng Ge said last Friday.

The regulation stipulates that the pricing base day of private placements should be the initial day of the issuing period for the present non-public issuance of stocks.

One senior economic researcher suggests that to eradicate market manipulation, the offering should not be allowed until 40 trading days later after the release of the private placement program. 

Meanwhile, the amount of shares that list companies plan to issue in the form of private placements shall not exceed 20 percent of the previous total. 

The securities regulator should make it clear that this rule applies in all cases, with no exception to be allowed, the researcher added. Only so, can back-door listing be eventually stamped out.  

Moreover, except for financial companies, listed firms possessing tradable financial assets in large amount or in long term, available-for-sale financial assets, and other financial investment items as of the end of the recent year will not be eligible for refinancing. 

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