Three Major Exchanges Act in Unison! Refinancing Policy Optimization Implemented to Support Technological Innovation

Text | Yang Lian Editor | Li Hengchun

The Shanghai, Shenzhen, and Beijing Stock Exchanges simultaneously implemented a series of measures to optimize refinancing, marking a new stage where capital market refinancing policies shift from “differentiated support” to “systematic optimization.”

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The new regulations focus on “supporting excellent companies, supporting technological innovation, and strengthening risk prevention and regulation,” implementing targeted policies across four dimensions. They broaden financing channels and improve review efficiency for high-quality listed companies and tech startups, while establishing comprehensive supervision to safeguard market bottom lines. This reform breaks the previous “one-size-fits-all” restriction, balancing ease of financing with risk control, and guiding funds toward innovative productive sectors.

Against the backdrop of continued recovery in IPO and refinancing markets, these policies will not only invigorate capital market investment and financing but also promote deep integration of finance with the real economy, injecting strong capital momentum for high-quality development.

Refinancing is a vital system supporting listed companies to strengthen and expand, fostering innovative capital formation and dynamic growth. It is also a key function of the capital market.

The 2026 government work report emphasizes deepening comprehensive reforms of capital market investment and financing, further improving mechanisms for long-term funds to enter the market, enhancing investor protection, expanding exit channels for private equity and venture capital funds, and increasing the proportion of direct and equity financing.

On March 6, Wu Qing, Chair of the China Securities Regulatory Commission (CSRC), stated at the Fourth Session of the 14th National People’s Congress that the “Fifteen-Five” period is critical for the high-quality development of the capital market. The CSRC will focus on improving five aspects: market resilience, institutional inclusiveness, adaptability, quality of listed companies, regulation and investor protection, and opening-up.

Specifically, to better serve technological innovation and emerging productive forces, the CSRC will introduce two new measures: first, deepen reform of the Growth Enterprise Market (GEM), further clarifying its functions to better support high-quality development of emerging and future industries; second, optimize refinancing mechanisms, including streamlining registration procedures at the institutional level.

Wu Qing pointed out that the first is to further enhance the inclusiveness and adaptability of the regulatory framework. This includes: refining standards for strategic investors, facilitating participation by social security, insurance, and public funds; introducing shelf issuance to guide rational and effective financing; improving the lock-in price mechanism to align issuance prices with market prices, better balancing interests between companies and investors; further simplifying refinancing procedures, among others. The second is to emphasize “supporting excellence and supporting tech,” significantly improving review efficiency for high-quality companies with strong governance and market recognition. The standards for “light assets, high R&D investment” on the Sci-Tech Innovation Board (STAR Market) and ChiNext will be extended to the main board, with measures such as relaxing refinancing limits for R&D investment and shortening intervals, to better support high-quality tech innovation firms. The third is to strengthen refinancing supervision, covering the entire process from disclosure, application, review, to fund use, with increased law enforcement to strictly punish illegal behaviors like misleading refinancing and unauthorized use of funds, effectively protecting investors’ rights.

Previously, China’s refinancing system has undergone a key upgrade—broadening financing channels and improving review efficiency for high-quality companies, while reinforcing market bottom lines through comprehensive supervision.

On February 9, the Shanghai, Shenzhen, and Beijing Stock Exchanges (hereinafter “the three major exchanges”) jointly announced a package of measures to optimize refinancing, systematically supporting innovative development of high-quality listed companies, meeting the financing needs of tech startups, improving financing convenience, and strengthening full-process supervision. The goal is to address pain points in the refinancing market, improve resource allocation efficiency, and inject new momentum into serving the real economy and emerging productive sectors.

Industry experts believe that the three major exchanges follow top-level design, coordinate closely, and deploy unified strategies, which is conducive to better resource guidance. Under the policy environment of “strict regulation and risk prevention,” the new refinancing policies focus on increasing inclusiveness and flexibility for tech startups and high-quality companies, encouraging secondary growth strategies. Multi-dimensional measures are precisely targeted to optimize the refinancing ecosystem, aligning with corporate development laws and market needs, achieving an organic balance between support and constraints.

This series of measures again signals clear support for technological innovation through finance, significantly improving refinancing review efficiency. The detailed standards for “light assets, high R&D investment” on the main board, along with public consultation, make policy implementation more practical, opening institutional channels for tech startups’ refinancing. Additionally, balancing “liberalization” and “regulation” through institutional design has multiple positive implications for the capital market and the real economy.

Huatai Securities notes that the refinement and optimization of refinancing rules by the three exchanges provide convenience for eligible high-quality and tech companies, helping to optimize market structure, channel liquidity toward quality firms and tech enterprises, aligning with the policy goal of a “slow bull, healthy bull.”

Enhancing refinancing flexibility and convenience

[The three major exchanges have introduced a package of measures to further improve the flexibility and convenience of refinancing for high-quality listed companies from four aspects.]

The measures include four main points:

1. Optimizing refinancing review for high-quality companies to further improve efficiency and support;
2. Better accommodating the needs of tech startups, allowing companies that have experienced a decline in share price to raise funds through competitive bidding or convertible bonds;
3. Increasing flexibility and convenience of refinancing mechanisms by simplifying application materials and optimizing simplified procedures negative list;
4. Strengthening supervision of funds raised and ongoing oversight, with strict handling of illegal activities like misuse of funds or unauthorized extension of interim funding.

Huatai Securities believes that these measures revolve around four core directions, forming differentiated and coordinated institutional arrangements aligned with market positioning, supporting both mature, high-quality companies to expand and grow, and innovative SMEs at different stages of development. The policies lower financing thresholds and costs for top-tier companies, broadening channels and supporting transformation and innovation.

In supporting high-quality companies’ innovation, the new refinancing rules follow the principles of “improving quality and efficiency, precise support for the best,” emphasizing “selecting the best among the best” and avoiding indiscriminate approval.

Specifically, the new rules clearly define “high-quality listed companies” as those with sound governance, compliant disclosures, and market recognition, supporting their refinancing while requiring funds to be invested in new industries, new formats, or new technologies that complement their main business. Cross-industry or diversified investments are strictly prohibited to focus funds on core development.

Meanwhile, the exchanges aim to improve the convenience of review procedures, especially for tech startups. The Shanghai and Shenzhen exchanges have introduced standards for “light assets, high R&D investment” on the main board, while the Beijing Stock Exchange (BSE) enhances inclusiveness for innovative SMEs. When companies submit refinancing plans, they must also briefly disclose previous fund usage and future plans, with the requirement that prior funds be mostly used up. Application materials can directly reference previously disclosed information that remains unchanged, reducing duplication. The review process is optimized with a published negative list for simplified procedures, shortening approval times, and further lowering disclosure and compliance costs. High-quality companies will benefit from faster review and approval.

Streamlining processes and strengthening supervision

[The new regulations simultaneously optimize refinancing procedures and reinforce full-chain supervision.]

According to the measures, the “light assets, high R&D investment” standard will be extended from STAR Market to the main board.

For “light assets,” standards are unified across boards. For “high R&D investment,” there are differentiated arrangements: STAR Market requires an average R&D expense ratio ≥15% or R&D investment ≥300 million yuan over three years, with R&D personnel ≥10% in the latest year; the main board only needs to meet the expense ratio or R&D investment threshold, providing easier access for innovative firms.

2022–2024 data show that 299 main board and 205 STAR Market companies meet these standards, accounting for 9% and 34% of their respective markets.

For unprofitable tech companies that have not yet turned a profit and have used funds mostly as planned, the new rules relax the interval between financings, allowing companies to initiate a new refinancing plan after six months from the last fund receipt, down from the previous 18 months. This adjustment better matches the high R&D and capital consumption characteristics of tech firms, avoiding delays that hinder innovation.

As of February 9, 2026, there are 35 A-share companies listed as unprofitable, not yet profitable in 2024, with intervals of six months or more since last financing, mainly in biomedicine (14) and semiconductors (7), accounting for over 60%. This benefits semiconductor and biomed companies that are already listed.

For companies experiencing share price declines (“breaking issuance”), the new rules cautiously open financing channels, allowing them to raise funds via market-based methods like competitive bidding or convertible bonds, with strict restrictions that funds must be used for core business. This prevents companies from exploiting short-term stock fluctuations for financing or engaging in arbitrage. As of February 9, 2026, 535 companies (about 9.8%) have experienced share price declines.

Since 2026, policies continue to optimize refinancing. On January 29, the CSRC issued a decision to revise relevant regulations, establishing a systematic framework for strategic investors in lock-in price offerings. This will promote more precise service to tech innovation and attract long-term funds.

Huatai Securities notes that policies clearly require strategic investors to seek deep integration with the company’s industry or governance, distinguishing them from short-term arbitrageurs. Industry investors and capital investors (such as social security, public funds, banks, insurance) are expected to have deep industry knowledge and strategic resources, forming a “dual-drive” of industry and capital. The participation ratio of strategic investors in private placements should not be less than 5% of total post-issuance share capital (excluding asset management products), implying they may need board seats and governance roles.

Simultaneously, the new refinancing rules emphasize “risk prevention and strong regulation,” establishing a comprehensive supervision system covering all stages—pre-, during, and post-issuance. The exchanges have set up mechanisms for pre-disclosure of refinancing plans, strictly prevent companies with issues from applying, and hold responsible the primary disclosure persons and intermediaries. For example, lock-in price offerings aimed at acquiring control require commitments to complete issuance within the approval period, with strict penalties for non-compliance. Oversight of fund use is intensified, with severe penalties for violations like unauthorized fund use or extending interim funding. The combined focus on process optimization and regulatory reinforcement further strengthens full-chain supervision.

Relaxing refinancing restrictions is central to the policy improvements

[The core of the new refinancing policies is a shift in regulatory focus, with relaxed restrictions being key to supporting the real economy and tech innovation.]

Huatai Securities believes that the current policy shift emphasizes classified regulation and targeted measures: for high-quality, well-managed listed companies, refinancing constraints are eased, and review efficiency is improved; for companies with ongoing losses or poor disclosure, stricter oversight remains. The further refinement of the refinancing system promotes a shift from quantity to quality, enhancing resource allocation efficiency.

Previously, policies often imposed uniform restrictions (“one-size-fits-all”). Now, the adjustments are moderate relaxations, with clear, actionable policies gradually being released. While some signs of easing appear, the overall approach remains focused on precise support and full-chain regulation. Authorities are further tightening disclosure and intermediary responsibilities, cracking down on misuse of funds and extending funding periods illegally, balancing support with risk prevention, and coordinating development between primary and secondary markets, with differentiated impacts.

In the primary market, refinancing activity is expected to grow significantly, benefiting brokerage-related businesses. The secondary market will show a bifurcation: well-performing, high-quality firms will have smoother financing channels, accelerating growth, while weaker, overvalued companies may face capital outflows and valuation pressures.

In August 2023, regulators set five red lines to strictly control financing for companies with share price declines, losses, or other issues, imposing strict requirements on interval periods and fund use. As a result, the scale of A-share refinancing shrank sharply, with less than 300 billion yuan in 2024. Although the scale is expected to rebound to trillions in 2025, IPO activity remains low, and overall direct financing still has room for growth.

Huatai Securities states that the first measure of this package clearly supports high-quality companies’ refinancing, focusing on “supporting excellence and supporting tech,” with comprehensive improvements in convenience, review speed, and thresholds. The core of the policy shift is to relax restrictions, supporting the real economy and innovation.

Compared to the August 2023 policies, the current measures emphasize “supporting excellence and tech,” with broad coverage, relaxing restrictions on amounts, timing, fund replenishment, and investment, while simplifying procedures. The main goal is to accelerate the cultivation of emerging productive forces and provide more capital support for tech innovation firms. For the real economy, the refinancing system optimization guides more social capital into innovation, industrial upgrading, and emerging sectors.

However, behind these targeted relaxations are clear policy considerations: to better serve technological innovation and emerging productive forces through optimized mechanisms, while addressing market pain points, improving review quality and efficiency.

Specifically, the five key improvements are:

1. Shortening refinancing intervals for tech startups. Previously, companies needed 18 months after last funding before initiating new refinancing. Now, unprofitable tech firms that have used funds mostly as planned can start a new plan after six months, matching their high R&D and capital consumption needs.

2. Relaxing restrictions on share-price-declined companies. Previously, such companies faced restrictions or bans. Now, they can raise funds via market-based methods like competitive bidding or convertible bonds, with strict restrictions that funds must go to core business, preventing misuse.

3. Supporting “light assets, high R&D investment” firms. The main board’s standards are clarified, with relaxed replenishment ratios, accommodating R&D-driven capital structures.

4. Enhancing application and review convenience. Flexibility is increased by allowing companies to reference previous disclosures, reducing duplication, and expanding simplified procedures to shorten review times, with green channels for high-quality firms.

5. Optimizing plan disclosure and process control. Establishing timely disclosure mechanisms, requiring commitments to complete issuance within approval periods, and tightening restrictions to prevent misleading financing.

Notably, these policies implement differentiated management: if share price declines are due to market or industry factors, they do not affect subsequent financing; if caused by poor management or unmet expectations, further financing may be restricted.

Additionally, the Beijing Stock Exchange (BSE) has tailored arrangements, such as asset restructuring and control acquisitions, to activate smaller listed companies.

From quantity expansion to quality improvement: a systemic shift

[The scope of these refinancing policies has expanded from “differentiated support” to “systematic optimization.”]

Huatai Securities summarizes that from August 2023 onward, the evolution of refinancing regulation can be divided into four stages:

1. Emergency tightening (August 2023): The CSRC issued a notice tightening IPO and refinancing, controlling pace and risks.

2. Implementation of detailed rules (November 2023): Exchanges introduced red lines, intervals, and stricter fund use rules, emphasizing regulation and red lines.

3. Differentiated support (April–June 2024): Policies favoring tech and innovative firms, establishing green channels and reform measures.

4. Systematic optimization (February 2026): The exchanges’ measures further enhance inclusiveness, improve review efficiency, support tech firms, and strengthen supervision.

Since the CSRC’s phased tightening in August 2023, regulatory focus has been cautious, emphasizing risk prevention and supporting high-quality companies. Post-2024, policies like the “1+6” reform for STAR Market and other measures have introduced differentiated support for tech firms, gradually shifting toward systematic optimization.

The recent measures further extend regulatory scope to the entire market, supporting high-quality companies with a second growth curve and high R&D investment, marking a new phase where refinancing regulation transitions from “differentiated support” to “systematic optimization.”

On June 18, 2025, the CSRC issued guidelines to improve refinancing convenience and refine strategic investor standards. On January 16, 2026, at the CSRC’s 2026 work conference, the focus was on enhancing multi-level equity market inclusiveness, deepening reforms, and promoting high-quality development of the Beijing Stock Exchange and the New Third Board.

Huatai Securities believes that the simultaneous release of refinancing measures by the three exchanges implements and refines previous directives on serving high-quality enterprises, supporting innovation, and improving financing efficiency. These policies address market concerns and facilitate high-quality corporate development and market function.

This set of measures is a key step in deepening investment and financing reforms, precisely solving issues like low review efficiency and limited flexibility. For listed companies, high-quality firms will benefit from improved financing efficiency, and the overall market will see reduced costs and risks, with full-chain supervision reinforcing risk control and channeling resources toward top-tier and emerging sectors.

Refinancing shifting from “scale expansion” to “quality enhancement”

[In recent years, regulators have continuously deepened reforms, promoting a shift in the refinancing market from “scale expansion” to “quality improvement.”]

From policy evolution, the recent measures by the three exchanges are not isolated but part of ongoing reforms since 2024 aimed at transforming the refinancing market.

On September 24, 2024, the CSRC issued opinions on deepening reforms of mergers and acquisitions, emphasizing simplified review processes, encouraging industry chain integration through M&A and targeted issuance, supporting high-quality development. This has significantly increased M&A activity, strengthening the system support for corporate growth.

On January 30, 2026, the CSRC revised the “Opinions on the Application of Securities and Futures Laws,” clarifying the minimum 5% stake requirement for strategic investors and refining conditions for institutional participation, further standardizing the market.

Wind data as of February 9, 2026, show that over 20 listed companies have successfully conducted targeted placements, with total refinancing reaching 134.73 billion yuan, and both the number of companies and total funds raised increasing compared to previous periods, laying a solid foundation for stable market operation in 2026.

Huatai Securities notes that targeted placements are a core channel for direct financing, and their steady growth and structural optimization will further activate the market, better aligning funding with company core businesses, innovation needs, and industrial integration, supporting both scale and quality improvements.

Unlike previous policies focusing mainly on STAR Market, recent measures by all three exchanges form a multi-layered, coordinated reform pattern, covering high-quality mature companies and innovative SMEs, with clearer policy guidance and greater market synergy.

The focus is on supporting two core groups: first, high-quality companies with good governance and market recognition, to develop their “second growth curve”; second, innovative SMEs at different stages, with inclusive arrangements to meet their financing needs. This balanced approach supports both mature giants and growing startups, embodying a systematic “supporting excellence” and “supporting tech” philosophy, fostering a healthy, coordinated capital market.

(This article was published in Securities Market Weekly on March 14.)