According to reports, the CSRC has given a "red light" to certain sectors, including food and beverage and COVID-19 testing, prohibiting them from equity financing on the Shanghai and Shenzhen exchanges.
"Yellow Light" Sectors
In addition to the "red light" sectors, the CSRC has also identified many "yellow light" sectors that may face scrutiny when seeking listing approval. These sectors include apparel and furniture companies and may be subject to closer examination if their growth relies heavily on debt.
Strategic Funding Focus
The implementation of these new guidelines suggests that the CSRC is seeking to channel funding towards strategic sectors, potentially to boost economic growth.
