SZSE recently released the integrated and revised business guides for listed companies, including 11 guides for the Main Board (SME Board) and 12 guides for the ChiNext board, marking the basic completion of the improvement of the system of self-discipline regulation rules for listed companies after more than one year of evaluation, planning, adjustment and refinement.
A simple and efficient system of rules is an important foundation to improve the quality and performance of market operation, energize market and assist listed companies in achieving high-quality development. Early last year, SZSE fully launched the adaptability evaluation and improvement of the system of self-discipline regulation rules for listed companies, developed the “roadmap” and “time table”, and actively advanced the establishment, revision, abolishment and interpretation of rules. Since the beginning of this year, SZSE has implemented the new Securities Law and put in place the reform of the ChiNext Board and the pilot project of the registration-based IPO system, which has put forward new tasks and new requirements on the development of the system of rules. Based on reform practices and market needs, SZSE has accelerated streamlining and optimizing the system of rules, providing support for the reform and development of the capital market.
So far, SZSE has revised and refined the Rules Governing Share Listing and the Guidelines for the Standard Operation of Listed Companies for the ChiNext Board, integrated and improved the Guidelines for the Standard Operation of Listed Companies for the Main Board and the SME Board. It has totally revised and formulated 25 guidelines for information disclosure of sectors and special business, developed and released 23 business guides, and abolished 93 memos, guidelines for information disclosure and so on. The three-level system of self-discipline regulation systems for listed companies, with listing rules at its core, guidelines for standard operation and guidelines for information disclosure of sectors and special business as its trunks, and business guides as its supplement, has further improved.
In the improvement of the rules, SZSE followed the market-based, rule-of-law principles and focused on two things:
First, doing subtraction. SZSE further reduced the levels of rules, cut the number of rules and deleted content that does not conform to the situation or development, is difficult to implement and adds extra burdens on listed companies, so as to improve the effectiveness of regulation. In the meantime, taking into account the characteristics of SZSE boards and companies, SZSE integrated the self-discipline regulation rules for the Main Board and those for the SME Board, included the improvement of the self-discipline regulation rules for the ChiNext Board in the overall work concerning the reform of the ChiNext Board, and made further adaptive and differentiated arrangements based on the characteristics of companies following the general trend of innovation, creation and creativity and those in the traditional industries that are deeply integrated with new technologies, new industries, new forms of business and new models.
Second, strengthening areas of weakness. According to the new requirements stipulated in relevant laws and regulations including the new Securities Law, the new situation of the capital market and the new ideas on self-discipline regulation, SZSE supplemented relevant rules to improve the effectiveness of the system of rules. Moreover, centering on special business, SZSE enriched its system of business guides and enhanced the convenience in applying.
In the rule improvement, which lasted more than one year, SZSE reconstructed the structure, content and format of the system of self-discipline regulation rules for listed companies in three steps:
Step one, establishing a three-level system and clarifying the positioning of rules. SZSE abolished all memos for the Main Board, the SME Board and the ChiNext Board and further streamlined the levels of self-disciple regulation rules for listed companies, forming a simpler, easier-to-implement, more transparent and more efficient three-level system of rules. Substantive regulatory requirements in the original memos were elevated to the guidelines for information disclosure, those that are mature in implementation were included in the Rules Governing Share Listing and the Guidelines for the Standard Operation of Listed Companies, and content relating to business operating procedures was integrated and added in business guides.
Step two, refining content of rules to meet market needs. First, SZSE balanced disclosure effect and cost, revised and refined the guidelines for standard operation and 18 guidelines for information disclosure of sectors, and deregulated and cancelled control that does not adapt to development needs, to ease the burdens on enterprises. Second, based on market needs, SZSE promptly released three guidelines for information disclosure of special business, namely, the guidelines for information disclosure of major assets restructuring, employee stock ownership plans, and transactions and related-party transactions. Third, on the basis of in-depth analysis of industry characteristics, SZSE formulated and issued four guidelines for information disclosure of sectors including the guidelines for information disclosure of the industrial robot sector, the integrated circuit sector, the lithium battery sector, and the non-metallic building materials sector.
Step three, restructuring business guides and improving user experience. First, following the vein of special business, SZSE established six categories of business guides based on business types, namely, issuance, listing & circulation, periodical reporting, stock ownership incentive, general meeting, announcement format and general information disclosure business operation. To support the implementation of the ChiNext Board refinancing registration-based IPO system, SZSE timely launched five business guides on issuance of convertible corporate bonds to nonspecific objects, fundraising through share issuance to nonspecific objects, share allotment to existing shareholders, share issuance to specific objects, and issuance of convertible corporate bonds to specific objects, to provide efficient, convenient services to listed companies. Second, SZSE integrated similar business content. For example, nine business guides and one piece of content in the information disclosure guidelines were combined into one information disclosure business guide. Redundant content was deleted and operation procedures were upgraded. Third, SZSE supplemented and improved the business chain. For example, it formulated the business guide for issuance of convertible corporate bonds to nonspecific objects, to realize the full coverage of content.
SZSE attaches equal importance to both the “establishment of regulations” and “implementation of zero tolerance”. SZSE will increase efforts in serving the market by holding training and communication, interpreting rules, answering questions, etc., help listed companies understand, observe and use well rules. SZSE will also continue to track the effect of the implementation of rules, and revise and adjust self-discipline regulation rules dynamically based on the development of the market. In the meantime, SZSE will further improve regulatory concepts and mechanisms, take solid steps to advance classified, precision, technology-based regulation, crack down on illegal behaviors such as financial fraud, and support listed companies in proper use of the capital market to achieve high-quality development.