All market participants,
At present, the prevention and control of novel coronavirus-caused pneumonia (NCCP) is in a crucial stage and weighs heavily on the heart of everyone in China. Since its outbreak, Shenzhen Stock Exchange (SZSE) has resolutely implemented the guiding principles of important instructions made by General Secretary Xi Jinping, decisions and plans made by the Central Committee of CPC and State Council, as well as work arrangements made by China Securities Regulatory Commission (CSRC), enhanced the overall situation awareness and given top priority to the prevention and control of NCCP. Meanwhile, SZSE has quickly taken actions together with other parties, brought its role into full play as a market organizer, regulator and service provider, gained deep understanding of and taken various measures to solve difficulties in market entities affected by the epidemic, with a view to bolstering the prevention and control of NCCP through concrete action.
To further implement the decisions and plans made by the Central Committee of CPC and State Council, actively push forward the implementation of the Notice on Further Strengthening Financial Support for the Prevention and Control of Novel Coronavirus-caused Pneumonia issued by five ministries and commissions (such as the People’s Bank of China) and the requirements of the CSRC on NCCP prevention and control, promote NCCP prevention and control and stable operation of SZSE and step up business support and service guarantee, SZSE has made relevant arrangements based on actual needs of market entities during the special period to improve market service modes, optimize business operations, carry out and refine prevention and control measures, reduce people gathering and flow, offer flexible and considerate frontline regulation and market services according to the principles of “handling special cases through special methods and responding to emergencies immediately”. These measures will ensure steady operation of businesses in the market, safeguard the health of market participants, and help us win the war against NCCP together with all market participants.
Relevant business arrangements are notified as follows:
I. Information Disclosure of Listed Companies
First, SZSE will set up a special service channel for the information disclosure of listed companies. SZSE is ready to provide consulting services regarding information disclosure of listed companies and related businesses affected by NCCP and support listed companies with respect to NCCP prevention and control and relevant information disclosure. Alternatively, the listed companies may directly consult the Department for Main Board Compliance of SZSE or conduct information disclosure business. Second, SZSE will support listed companies in respect of periodic report disclosure. Affected listed companies that are unable to disclose results forecast or newsletters on time may apply for extension to SZSE. Affected listed companies that are unable to disclose 2019 annual reports on the scheduled date may apply to SZSE for postponing disclosure to 30 April 2020. If affected listed companies find it difficult to disclose 2019 annual reports or the reports for Q1 2020 within a statutory time limit, SZSE will make proper arrangements according to the unified plan of the CSRC, which will be further notified. Third, SZSE will properly extend relevant time limits on merger & acquisition and reorganization business. As per the Notice on Further Strengthening Financial Support for the Prevention and Control of Novel Coronavirus-caused Pneumonia, the effective period of financial data for administrative permit of M&As and reorganizations of listed companies and time limits on giving the notice on holding a general meeting after the disclosure of M&A and reorganization plans are extended. Fourth, SZSE will support listed companies to hold online explanation meetings for investors. Listed companies are encouraged to hold an explanation meeting for investors or annual result presentation meeting online according to relevant regulations to introduce corporation operation, communicate with investors and guide investors towards rational investment. In this respect, SZSE will offer necessary assistance. Fifth, SZSE will encourage investors to attend general meetings through online voting. To prevent the spread of NCCP and protect the health of investors, shareholders of listed companies are encouraged to attend meetings through online voting. SZSE will exempt the listed companies registered in Hubei from 2020 online voting service fees. If a listed company needs to hold an on-site general meeting during the prevention and control of NCIP, it should properly organize the meeting to safeguard the health of attendees. Sixth, SZSE will encourage listed companies to actively perform their social responsibilities. Listed companies should make proactive efforts to perform their social responsibilities in light of actual production and operation situation and take effective measures to support NCCP prevention and control. The information disclosure relating to the performance of social responsibilities by listed companies will be taken as an important indicator of annual information disclosure assessment.
II. Share Underwriting and Listing Cultivation Service
First, SZSE will conduct share issuance and listing business off-site. During the prevention and control of NCCP, in principle, issuers and lead underwriters should mail issuance and listing applications to SZSE. Second, SZSE will cancel the on-site procedures of listing ceremony during the prevention and control of NCCP. During the prevention and control of NCCP, SZSE will arrange no on-site listing ceremony and will sign listing agreements with issuers via mail. Issuers are supported to hold a listing ceremony at SZSE after the elimination of NCCP impact. Third, SZSE will reduce fees for listed companies registered in Hubei. Listed companies registered in Hubei are exempted from initial and annual listing fees of 2020. Fourth, SZSE will make continued efforts in market cultivation and service. SZSE will vigorously foster market through the Listing APP (“Shangshitong”) online consultation, remote video, online training and other methods and actively provide convenient, professional and specific market services. SZSE will increase service support to market fostering in severely affected regions such as Hubei and actively cooperate with local governments and enterprises intending to get listed on listing.
III. Fixed-Income Business
First, SZSE will set up special service channels for business consultations. During the prevention and control of NCCP, entities engaging in bond and asset-backed securities may promptly contact the Fixed-Income Business Department of SZSE regarding special cases of review, issuance, listing, transfer, information disclosure and transaction settlement via telephone, e-mail or other methods. Second, SZSE will provide financing services relating to the prevention and control of NCCP. According to relevant plans of the Ministry of Finance and the arrangements of governments of regions (such as Hubei) heavily stricken by NCCP, SZSE will offer active cooperation in the issuance, technical support and service of general and special municipal bonds. SZSE will establish a green channel for the review and approval of bonds and asset-backed securities that will be mainly used for NCCP prevention and control or issued by enterprises in regions heavily stricken by NCCP, refine work flow and implement the policy of “special person for liaison and special review and approval”. Third, SZSE will appropriately extend the time limit on issuing bonds and asset-backed securities. If the issuance documents for bonds and asset-backed securities have been obtained but issuance is not completed within the effective period specified in the documents because of NCIP, private placement corporate bond and asset-backed securities issuers may apply for putting off issuance to SZSE. Fourth, SZSE will conduct relevant business off-site. During the prevention and control of NCIP, relevant documents (such as sealed documents for review items, applications for issuance, issuance verification opinions by attorney and underwriting summary report) to be submitted to SZSE may be sent in an electronic format, with paper documents mailed subsequently. If it is expected that applications for bonds and asset-backed securities cannot be submitted for review and approval within a specified time limit due to NCIP, application for extension may be made to SZSE. Fifth, SZSE will assist issuers and managers in regular and temporary report disclosure. If it is expected that regular and temporary reports on bonds and asset-backed securities can hardly be disclosed as stipulated due to NCIP, application for extension may be made to SZSE. SZSE is analyzing the issues concerning the difficulty in disclosing regular reports by some bond issuers, asset-backed securities administrators and custodians within a statutory time limit because of NCCP according to the overall plan of CSRC, with relevant explicit arrangements to be further notified. Sixth, SZSE will encourage off-site meetings for bond and asset-backed securities holders. In order to prevent NCCP spread and protect the health of investors, video, telephone or other off-site meetings for bond and asset-backed securities holders are encouraged. If an on-site meeting is really needed during the prevention and control of NCIP, the convener should clean and disinfect the meeting site to protect the health of participants and create a sanitary, safe and orderly environment.
IV. Member Business
First, SZSE will duly implement the requirements for support policies. As instructed by the CSRC, SZSE will provide special policy support for Hubei and other regions heavily affected by NCCP with respect to equity pledge financing and securities margin trading. Second, SZSE will set up special service channels for business consultations. During the prevention and control of NCIP, if members intend to inquire about equity pledge financing and securities margin trading, they may contact the Membership Supervision Department through telephone, email or other means. Third, SZSE will provide off-site business training. During the prevention and control of NCIP, SZSE will suspend on-site business training for members, and will provide them with training through off-site methods such as website video. Fourth, SZSE will encourage the members to guide investors to trade off-site. To prevent spread of NCCP and protect the health of investors, members are encouraged to guide investors to carry out off-site trading activities through various ways, and provide effective technical support and related services for off-site trading. Where on-site trading services are necessary, members are required to maintain proper epidemic prevention and protection measures in business places and trading facilities. Any abnormality must be reported to SZSE immediately. Fifth, SZSE will support the members to educate the investors and manage the trading behaviors of customers. SZSE will support the members to actively guide investors to analyze the impact of NCCP rationally and objectively, uphold the concept of long-term investment and value-oriented investment, and carry out investment activities in accordance with laws and regulations. SZSE will support the members to fully disclose the risks of securities margin trading, encourage them to reasonably determine the minimum maintenance guarantee ratio and maintain the stable operation of the market according to market conditions, customer credit, their risk tolerance and other factors. Sixth, SZSE will support the members to take measures to ensure the smooth operation of all businesses. SZSE will support the members to prepare targeted and feasible business emergency plans, take necessary measures to ensure the hygiene and safety of business places, assign backup personnel for key positions, and make arrangements for the replacement of relevant personnel in special circumstances.
V. Fund Business
First, SZSE will conduct business training and exchanges through off-site methods. During the prevention and control of NCIP, SZSE will suspend on-site training such as the ETF Forum, and will use off-site methods such as teleconference to communicate with fund managers on product development and other businesses, so as to continuously provide high-quality services for the market. Second, SZSE will support the fund liquidity service providers to carry out business in an orderly manner. SZSE will support fund liquidity service providers to actively provide liquidity services and maintain normal trading order. Where the providers are unable to provide liquidity services due to the epidemic, they may file an application to SZSE for exemption from the liquidity service rating assessment for a period of time according to the actual situation.
VI. Options Business
First, SZSE will set up special service channels for business consultations. During the prevention and control of NCIP, if the options operators need to inquire about options business or report an emergency, they may contact the Derivatives Business Department of SZSE through telephone, email or other means. Second, SZSE will support the options operators to properly manage the options risks and market makers and report business arrangements. SZSE will support the options operators to allocate funds for options business, manage investors' options margin and provide trading risk prompts in combination with the market situation. SZSE will support the options market makers to actively perform their obligations and maintain normal trading order. If they are unable to carry out the market making business due to the epidemic, they may file an application to SZSE for exemption from the market making obligation for a period of time according to the actual situation. For the two businesses, namely, the reporting of position limit for option varieties whose long position limit is initially increased to more than 2000 contracts and the reporting of process-based trading accounts of options, if the options operators are affected by the epidemic and unable to handle these businesses through the options business area of SZSE, they may submit the documents by e-mail. Third, options operators are encouraged to provide off-site account opening services. For investors who meet the conditions for off-site account opening, the options operators are encouraged to open an SZSE derivatives contract account for them through witness, online or other ways.
VII. Agreement Transfer, Assistance in Law Enforcement, Hearing and Review
First, SZSE will handle share agreement transfer businesses through off-site methods. During the prevention and control of NCIP, the applicants may email their application documents and letters of commitment to SZSE. For eligible applications, SZSE will send a notice to the applicant by email, issue a confirmation and mail it to the applicant; if an applicant has submitted the application but has not yet received the confirmation, it may proceed with the follow-up business as described above. Second, SZSE will assist in law enforcement through off-site means. During the prevention and control of NCIP, if the competent authorities such as the people's court, the people's procuratorate and the police require SZSE to provide assistance in law enforcement such as business inquiry according to the law, such matters will, in principle, be handled through mails. Upon receipt, SZSE may conduct verification through video or other means, and provide feedback through confidential means or other ways designated by the above-mentioned authorities. Third, SZSE will reschedule the hearings and review meetings. In principle, the hearings and review meetings scheduled to be held recently will be postponed; for applicants who are unable to attend the hearing or other activities held in SZSE due to the NCIP, they may apply for an extension; for applicants who file an application for a hearing or review meeting during the prevention and control of NCIP, SZSE may postpone the hearing or review meeting or hold it off-site by means of video or telephone conference; if application forms or other documents are required, the applicant may submit electronic versions through the special business area of SZSE or off-site means such as e-mail, which will have the same effect as paper documents.
VIII. Investor Service Business
First, SZSE will provide smooth complaint channels for investors. During the prevention and control of NCIP, SZSE will temporarily close the reception place for investors. Investors may raise questions or requests through the service hotline, WeChat official account, e-mail and other off-site means. SZSE will closely follow up and respond with detailed information, and address investors' concerns in a timely manner. Second, SZSE will provide good education services for investors. SZSE will use Internet channels such as website, microblog and WeChat to carry out investor education and publicity, broadcast investor education lectures online, and continuously provide investors with high-quality online investment education services. SZSE reminds investors to properly protect their personal health. During the prevention and control of NCIP, the education base of SZSE will be temporarily closed. Third, SZSE will advocate rational investment. During the prevention and control of NCIP, SZSE calls on the investors to exercise shareholders' rights, raise inquiries, participate in securities trading through off-site means such as network and telephone. They are advised to objectively analyze the impact of NCCP and prudently carry out securities investment.
The prevention and control of NCCP is still complex and severe. SZSE will continue to implement the decisions and deployments of the CPC Central Committee and the State Council, hold the needs and requests of the market in mind according to the requirements of the CSRC, and actively study and solve the new situations and problems in the prevention and control of NCIP. While respecting the market laws, SZSE will maintain the normal order of the market, guide rational investment in the market, and protect the legitimate rights and interests of investors. Working with all parties in the market with a firmer attitude, more effective measures and more positive actions, SZSE will maintain the healthy and stable development of the capital market and contribute to win the battle against NCIP.
The notice is hereby given.
Shenzhen Stock Exchange
1 February 2020