Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued new fundraising supervision rules to enhance the regulation of funds raised by listed companies, effective from June 15, 2025, emphasizing the dedicated use of funds for main business and supporting the real economy [1] Group 1: Fundraising Regulation - The new fundraising supervision rules are a revision of the previous guidelines, focusing on the dedicated use of raised funds and stricter monitoring of fund usage and safety [1][2] - Companies are required to establish internal control systems for managing and supervising the use of raised funds, including clear approval authority and risk control measures [2] - It is crucial that judicial authorities do not freeze or divert funds from the fundraising accounts, which requires collaboration between CSRC, the Supreme People's Court, the Supreme People's Procuratorate, and the central bank [2] Group 2: Oversight of Excess Funds - The rules stipulate that excess funds should be used for ongoing and new projects or for repurchasing and canceling company shares, with a suggestion that excess funds could also be returned to investors [3] - There should be strict regulations on the use of raised funds for supplementing working capital, limiting such use to no more than 20% of the total raised amount [3][4] - Companies that distribute dividends should not use raised funds for working capital supplementation, as this could harm public investors' interests [3] Group 3: Temporary Use of Funds - The rules allow temporarily idle funds to be used for working capital, with a maximum duration of twelve months for such temporary use [4] - Companies must implement responsibility systems for temporary fund supplementation, holding accountable those who supported such actions [4] - Companies engaging in investment activities with their own funds are prohibited from using raised funds for working capital supplementation, and failure to repay temporary supplements will result in a suspension of all financing projects [4]