China's securities regulator has unveiled a comprehensive plan to deepen the reform of the ChiNext market, outlining eight major measures aimed at enhancing its role in serving the real economy and supporting the development of new quality productive forces.
The reform package introduces a series of targeted initiatives. First, it emphasizes the market's functional positioning to better serve high-quality development of the real economy, supporting listings of quality innovative companies in sectors such as new consumption and modern services to improve market inclusiveness.
Second, the reform optimizes listing standards to enhance attractiveness and包容性, adding a fourth set of criteria to better accommodate high-quality innovative enterprises.
Third, it actively involves local governments to improve review efficiency, piloting a system where provincial authorities recommend companies to regulators and the Shenzhen Stock Exchange for ChiNext listings, applicable to firms preparing for listings under the third or fourth set of standards.
Fourth, the plan strengthens scrutiny throughout the listing process, enhancing the precision of regulatory inquiries and ensuring rigorous oversight from application to registration.
Fifth, it improves financing and M&A mechanisms by introducing a shelf-offering system for follow-on financing, streamlining simplified procedures for secondary offerings, and allowing flexible performance indicators for equity incentives. The reform also supports ChiNext companies in issuing innovation bonds and green bonds.
Sixth, the measures bolster whole-process supervision to enhance listed company quality, including tighter regulation of IPO pricing, continued crackdowns on financial fraud, strengthened穿透式监管, and stricter enforcement against violations such as fraudulent listings. The plan also refines delisting mechanisms and reinforces the responsibilities of intermediaries as market gatekeepers.
Seventh, the reform advances investment-side changes by introducing market makers, real-time block trade confirmation, and post-market fixed-price trading for ETFs on ChiNext. It permits fund advisors to allocate to ChiNext ETFs and optimizes the index, ETF, and derivatives ecosystem.
Eighth, the plan promotes collaborative efforts to foster a healthy market environment, enhancing local governments' roles in enterprise cultivation, service provision, and risk management. It strengthens coordination with industry regulators and boosts the function of the Shenzhen Stock Exchange's technology and intellectual property trading center, while advocating for robust judicial support.
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