The China Securities Regulatory Commission (CSRC) has issued an opinion document aimed at deepening the reform of the ChiNext board. Serving as a key platform for implementing the innovation-driven development strategy and supporting the growth of new quality productive forces, the Shenzhen Stock Exchange's ChiNext board has, over its 16-year history, continuously improved its systems and mechanisms. It has effectively fulfilled its market functions, nurturing a group of benchmark enterprises and forming cluster effects in strategic emerging sectors such as information technology, new energy, and high-end equipment manufacturing.
The new guidelines thoroughly implement the decisions of the Central Committee of the Communist Party of China and the State Council. They firmly adhere to the main priorities of preventing risks, strengthening supervision, and promoting high-quality development. Focusing on continuously deepening comprehensive reforms in capital market investment and financing, the guidelines propose a series of targeted reform measures. These aim to optimize the entire chain of innovation and regulatory systems on the ChiNext board, further enhancing institutional inclusiveness and adaptability.
The key reform measures include:
First, highlighting the board's functional positioning to better serve the high-quality development of the real economy. This involves further leveraging the ChiNext board's characteristic strength in serving growth-oriented innovation and entrepreneurship enterprises. It will intensify support for the development of new industries, new business forms, and new technology companies, as well as the transformation and upgrading of traditional industries. There will be active support for high-quality innovative companies that are not yet profitable, and for quality innovators in areas like new consumption and modern services, to issue shares and list.
Second, optimizing listing standards to improve inclusiveness and attractiveness. A fourth set of listing standards will be added to the ChiNext board, providing better financial services for high-quality innovation and entrepreneurship enterprises in emerging and future industries. An IPO pre-review mechanism will be established, and reforms to the pricing mechanism for new share issuances will be deepened.
Third, actively leveraging the role of local governments to help improve the efficiency of the review and registration process. A pilot program will be launched where local governments provide information to the CSRC and the Shenzhen Stock Exchange on enterprises intending to list on the ChiNext board. This applies to enterprises that have already applied for IPO tutoring registration and plan to apply under the third or fourth set of ChiNext listing standards. The information provided by local governments will serve as a reference for the review and registration process but will not be a mandatory procedure for listing.
Fourth, strictly controlling the admission criteria for listings and tightening responsibility throughout the review and registration chain. The primary responsibility of the Shenzhen Stock Exchange for the review process will be further emphasized, ensuring quality control. The pertinence of review inquiries will be enhanced. Checks and balances on public power will be strengthened, further reinforcing the prevention of integrity risks throughout the entire review and registration process.
Fifth, improving the financing and M&A systems to enhance the flexibility and convenience of equity and bond financing. A shelf-offering system for follow-on offerings will be introduced. The simplified procedure for follow-on offerings will be optimized. High-quality innovative companies will be supported in flexibly setting assessment indicators for equity incentives. ChiNext companies will be supported in issuing products such as Sci-Tech Innovation bonds and green bonds.
Sixth, strengthening whole-process supervision to promote the improvement of listed company quality. Supervision of new share issuance pricing will be enhanced. There will be continuous and strict prevention and punishment of financial fraud by listed companies, with strengthened穿透式 supervision (penetrative regulation) and severe penalties for illegal activities such as fraudulent issuance and financial fraud. Differentiated supervision of listed companies will be strengthened. The delisting system will be improved and strictly implemented. The responsibility of intermediaries as 'gatekeepers' of the capital market will be further emphasized.
Seventh, further deepening reforms on the investment side to promote coordinated development of investment and financing. Mechanisms such as market makers, real-time confirmation for block trades, and post-market fixed-price trading for ETFs will be introduced on the ChiNext board. Fund investment advisors will be allowed to allocate to ChiNext ETFs. The system of ChiNext indices, ETFs, and futures and options products will be optimized.
Eighth, pooling efforts from all parties to jointly foster a favorable market development ecosystem. The role of local governments in enterprise cultivation, enterprise-related services, and risk disposal will be further utilized. Communication, coordination, and information sharing with relevant industry authorities will be strengthened. The function of the Shenzhen Stock Exchange's Achievement and Intellectual Property Trading Center will be enhanced. Efforts will be made to encourage judicial authorities to provide high-quality judicial safeguards.
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