Measures for the Administration of the Use of Raised Funds Functions of the Measures for the Administration of the Use of Raised Funds

In order to further standardize the use and management of funds raised by listed companies, improve the efficiency of fund use, and protect the legitimate rights and interests of investors, Shanghai Stock Exchange revised the Regulations on the Management of Funds Raised by Listed Companies of Shanghai Stock Exchange according to the Regulatory Guidelines for Listed Companies No.2 Regulatory Requirements for the Management and Use of Funds Raised by Listed Companies of China Securities Regulatory Commission (CSRC Announcement No.201244). The above is the relevant content of the Measures for the Administration of the Use of Raised Funds.

What is raising funds?

Fund-raising means that enterprises raise and concentrate funds for production, construction and business activities, which is referred to as fund-raising, mainly divided into investors' investment and borrowing from banks. The capital invested by investors is divided into state-owned capital, enterprise capital, individual capital and foreign capital. In accordance with the provisions of laws and regulations, enterprises can raise funds through state investment, fund-raising by all parties and stock issuance. Investors can invest in cash, in kind, intangible assets and other assets. At the same time, financing also means that enterprises use various channels to raise funds needed in the process of production and operation in various ways. Due to the different sources and methods of such funds, their raising conditions, financing costs and risks are also different. Therefore, the financing management in corporate finance is to find, compare and choose the source of funds that is most favorable to the company's financing conditions, the lowest financing cost and the least financing risk. This paper mainly focuses on the relevant knowledge points of the Measures for the Administration of the Use of Raised Funds, and the content is for reference only.