On 5 February 2021, with the approval of the China Securities Regulatory Commission (CSRC), SZSE started preparing for the merger of the Main Board and the SME Board (hereinafter referred to as the “merger”). Under the overall planning and guidance of the CSRC, SZSE has steadily carried out relevant work together with market participants, following the overarching approach of “Two Unification and Four Unchanged” (making business rules and mode of operation supervision unified, and keeping issuance and having the listing conditions, investor’s threshold, trading mechanism, and code and abbreviation of securities unchanged). We have organized integration of relevant business rules and mode of operation supervision and made adaptive adjustments to relevant indexes and fund products. We have successfully upgraded technical systems and steadily advanced the issuance and listing arrangements. Relevant preparatory work has been completed. Recently, with the approval of the CSRC, SZSE released the notice on the merger, along with relevant rules, laying out relevant arrangements after the merger is implemented and announcing that the merger will be officially implemented on April 6.
In the integration of business rules of the two boards, SZSE has made adaptive revisions to seven rules including the trading rules, the implementation rules on securities margin trading and the guidelines on high-ratio bonus issue and stock dividend distribution, and abolished two notices including the Notice on Piloting the Continuous Supervision Specialist System in Some Sponsor Institutions. The integration mainly involves deleting relevant description about the SME Board, giving a unified definition for high-ratio bonus issue and stock dividend distribution, adjusting the benchmark indexes for calculation of relevant transaction indicators, canceling the continuous supervision specialist system, etc. The foregoing adjustments and arrangements will become effective when the merger is implemented on April 6.
The merger is an important measure adopted by SZSE to deepen the reform of the capital market in all respects. It is of great significance for refining market functions, strengthening the foundation of the market, improving market activity and resilience, facilitating market-oriented allocation of capital elements, and better serving national strategic development. Guided by the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will correctly understand the new development stage, apply in depth the new development philosophy, and promote the formation of the new development pattern. We will actively carry out the principles of “system building, non-intervention, and zero tolerance” and the requirements of “standing in awe of the market, rule of law, professionalism and risks and rallying the support of all sides to develop the capital market”. Following the working idea of being “open-minded, transparent, honest and impartial/strict”, we will fully put in place all reform tasks, and continue to improve the market pattern with the Main Board and the ChiNext Board as the main body. We will give full play to the market functions of SZSE to better support enterprises of different types and in different development stages in pursuing high-quality development. We will strive to build ourselves into a quality innovation capital center and world-class exchange and assist the capital market in making a good start of the 14th Five-year Plan period.