The China Securities Regulatory Commission (CSRC) announced Monday its decision to approve the program by the Yantgze Hydroelectric Power Co. to issue warrants, the first financing project by a listed firm that has been given the green light by the regulator for a year.

 

The announcement by the regulator indicates China has begun to resume financing by listed firms after a one-year break, which was intended to prevent the outflow of capital from the bearish stock market.

 

The hydroelectric company submitted the application to raise 6.4 billion yuan (about US$800 million) by issuing warrants a year ago.

 

The Chinese stock markets have recovered from five years of bearish performance with its major index staying at 1,664 points, compared with 998 points in early June of last year.

 

The regulator has said it would resume initial public offering when the stock market operates with improved confidence of investors.

 

(Xinhua News Agency May 16, 2006)