ChiNext - Positioning
ChiNext, is an important component of China’s multi-tier capital market system. As an independent market, ChiNext offers a new capital platform tailor-made for the needs of enterprises engaged in independent innovation and other growing venture enterprises. The difference between ChiNext and the main board lies in their mechanisms of financing, investment and risk management for issuers at various stages of development, rather than simply the sizes.
ChiNext - Functions
The launch of ChiNext marks an important milestone for the nation’s independent innovation strategy based on the approach of scientific development. It is also a critical move for improving the level and structure, enhancing the depth and extent of .China’s capital market. ChiNext is also of remarkable significance for promoting small and mid-sized enterprises (SMEs) and creating sound interactions among independent innovators, venture capital and capital market. ChiNext is favorable for: (i) perfecting the financing chain for SMEs engaged in independent innovation and facilitating industrial upgrade; (ii) promoting demonstrative and multiplier effects of capital market in driving economic growth, and enhancing development in venture capital investment; (iii) stimulating public enthusiasm for entrepreneurship, innovation, and employment; (iv) enriching capital market products and providing investors with a wider range of financial instruments for wealth management and risk hedges.
ChiNext - Institutional Innovation
Fully independent from the main board market, ChiNext takes into consideration the actual situation of China’s economy and capital market in its institutional design. A series of targeted institutional innovations have been made in such areas as securities offering, listing, trading and oversight, highlighting the growth potential, capability of innovation and industrial diversity of China’s venture enterprises community. Such innovations include: (i) lower market access threshold for growth venture firms,, strengthened responsibilities of intermediary institutions and improved market restraint mechanism (ii) investor suitability system for a rational and efficient investment market and protection of investors’ interests; (iii) reforms and innovation introduced to continuing compliance of listed enterprises with regard to information disclosure, continuing supervision, trading system, surveillance system, delisting system based on the distinct characteristics of venture enterprises.
ChiNext - Vision
Chinext’s vision is to build a capital market platform providing solid support for the development of independently innovative enterprises and other growing venture enterprises, and a marketplace with a distinctive character and international competitiveness.