BEIJING: China’s cash-strapped companies are going to new lengths to raise money from the booming stock market, even if it comes at a cost to existing shareholders. Chinese companies face restrictions on how much, how often and at what price they can sell new shares through private placements, the hitherto most popular method to raise money via the equity market. The curbs on private placement were put in place in 2017, when new listings were picking up pace, alarming regulators that they may drag down the stock market by adding supply. The Shanghai Composite Index has risen more than 30% this year through last Friday, the best-performing stock market in the world. Some analysts warn the issuance could be a temporary drag on the equity market.

Source: The Star April 22, 2019 23:37 UTC