On the basis of studying in depth the characteristics of industries and summing up regulatory experiences, SZSE released two guidelines for information disclosure by industries listed on the ChiNext Board today, one concerning communications and the other cybersecurity. Upholding the idea of the registration-based IPO system reform with information disclosure at its core, the two guidelines have focused on improving the sufficiency and effectiveness of information disclosure by strategic emerging industries and promoting high-quality development of innovation-oriented enterprises and startups. After they are released, the guidelines for information disclosure by industries listed on the ChiNext Board will cover 15 emerging industries including pharmaceuticals, energy conservation & environmental protection, industrial robot, integrated circuit and lithium battery.

As important support to put in place the construction of new infrastructure such as 5G and accelerate the development of modern industrial system, the communications industry is closely related to such factors as macroeconomic policy, development of communications technologies and operators’ capital spending, and is featured by strong periodicity, fast technology updating and iteration and a high proportion of overseas business. The cybersecurity industry, which is an important force to advance the construction of a digital China and ensure the security of national data, has such characteristics as a high degree of market segmentation, fast technology updating and iteration and importance of compliant operation to national policies and people’s livelihood. The ChiNext Board has gathered a batch of communications and cybersecurity companies that are developing fast and have attracted a lot of market attention. Therefore, it’s necessary to formulate guidelines for information disclosure by those industries based on the industries’ characteristics, market concerns and investors’ information demand, to specify requirements on information disclosure by the industries.

The guidelines for information disclosure by the communications industry has focused on the following content. First, it has paid attention to R&D and innovation capabilities, requiring companies to disclose applicable key technical or performance indicators of relevant products or services based on business characteristics, and disclose R&D and innovation capabilities based on R&D investment direction and changes in patents. Second, it has paid attention to companies’ strengths and weaknesses, requiring companies to comprehensively analyze their strengths and weaknesses based on the industry’s development situation, the locations they are at on the industrial chain, their market positions and their changes in key technological innovations. Third, it has strengthened risk disclosure, requiring companies to fully warn investors about risks in overseas business, new products or new technologies, patent infringement litigation, etc. Fourth, it has laid down strict measures for regulation of companies taking advantage of the “5G hotspot”. Regarding companies taking advantage of the “5G hotspot”, it requires the companies to fully disclose details and subsequent developments certified by important customers.

The guidelines for information disclosure by the cybersecurity industry has focused on the following content. First, it has paid attention to core security products, requiring companies to disclose the sales and business conditions of their core security products based on the market segments they are in, their locations on the industrial chain, key functions of products, sales information to different types of customers, etc. Second, it has emphasized operation compliance, requiring companies to disclose whether they have obtained major qualifications for their cybersecurity related services, changes in industry policies and laws and regulations, relevant information about guarantee of product (service) quality and security, information about security guarantee of operating facilities, network and data relating to cybersecurity products, platform management information, etc. Third, it has strengthened risk disclosure, requiring companies to promptly fulfill their information disclosure obligations and warn investor about risks when they are faced with major adverse changes in cybersecurity related laws and regulations, or are openly circulated because they have a large-scale data leak incident in daily operation, receive severe administrative punishment from the industry authority, or have major vulnerabilities or hidden risks in products (services), etc.

SZSE has always been adhering to embracing ideas with an open mind when formulating rules. In the preparation of the guidelines, we listened to the voice of all market entities to achieve a market consensus. On the one hand, we sought opinions from market entities such as listed companies and market institutions via seminar, written forms, etc. In the meantime, we sent out questionnaires to small and medium investors in our investor education section, in order to fully balance the requirements of the demanders and suppliers of information. By doing so, it has guaranteed the pertinence and effectiveness of information disclosure, as well as a reasonable increase in companies’ information disclosure cost. On the other hand, we gave full play to the role of the Industry Expert Consultant Library. We listened to the advice of industry experts and fully assessed the enforceability of the rules, disclosure cost, the impact of the rules on industry development, etc.

Next, SZSE will continue to follow the market-based and law-based reform direction, stick to the regulation idea with information disclosure at its core, and promptly adjust, enrich and refine the guidelines for information disclosure by emerging industries listed on the ChiNext Board based on investors’ requirements and changes in the development of the industries. SZSE will work to improve the information disclosure quality of listed companies, support listed companies in forming core competitive advantages at a faster pace, and ensure stable implementation of the ChiNext Board reform and registration-based IPO system.