Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued new regulations emphasizing that raised funds must be used specifically for main business operations, and excess funds cannot be used for permanent working capital or repaying bank loans [1][2] Group 1: Regulatory Changes - The new regulations require that raised funds focus on core business and strictly control the use of excess funds [2] - The regulations outline specific scenarios for changing the use of raised funds, including the cancellation of original projects or permanent working capital supplementation, with penalties for unauthorized changes [2] - Stricter oversight of fund accounts is mandated, requiring temporary working capital supplements to be conducted through specialized accounts [2] Group 2: Trends in Fundraising - Since 2025, many technology companies have announced fundraising plans that primarily target their main business, focusing on "vertical deepening" and "full-stack development" [3][4] - "Vertical deepening" refers to projects closely related to a company's main business, while "full-stack development" encompasses projects that cover multiple business areas [3][6] - For example, Cambrian's fundraising of 4.98 billion yuan is aimed at developing software platforms for large models, showcasing a clear focus on its core business [3] Group 3: Industry Support and Demand - The growth in demand for high-tech products is driven by policy support and technological advancements, with the government promoting the integration of digital technology and manufacturing [7] - The Chinese technology sector is positioned to lead global innovation due to its robust digital economy, infrastructure, and supportive policies [7] Group 4: Excess Fund Usage - Despite many companies adhering to the new regulations, some still plan to use excess funds for permanent working capital [8][9] - Companies like Ruide Intelligent and Beifang Changlong have announced intentions to use excess funds for working capital, raising concerns about compliance with the new regulations [9][10]