To smoothly promote the implementation of the regulations on the Moving of companies from the select tier of the National Equities Exchange and Quotations (“NEEQ”) to the ChiNext Board, SZSE released the supporting business rules on July 23. Those rules include the Business Guidelines for the Review of the Listing on the ChiNext Board No. 3 – Content and Format of the Report on the Listing of NEEQ-listed Companies on the ChiNext Board, the Business Guidelines for the Review of the Listing on the ChiNext Board No. 4 –Application Documents for the Listing of NEEQ-listed Companies on the ChiNext Board, the Guidelines on the Content and Format of the Letter of Sponsorship for the Listing on the ChiNext Board (Revised in 2021), and the Guidelines for the Handling of the Application Documents for the Listing on the ChiNext Board (Revised in 2021).

The release of the foregoing supporting rules is a concrete measure adopted by SZSE to implement the guiding principles of relevant instructions of the China Securities Regulatory Commission (“CSRC”) and refine the requirements of the Measures for the Listing of NEEQ-listed Companies on the ChiNext Board (Trial). The supporting rules have laid out the information disclosing principles and main content and format of the report on the listing of NEEQ-listed companies on the ChiNext Board, and the requirements on the application documents, providing a clearer path for practical operation and ensuring institutional connection for the implementation of the listing of NEEQ-listed companies on the ChiNext Board. In formulating or revising those rules, SZSE has followed the following principles.

First, with the IPO rules as the basis, SZSE has ensured the consistency of information disclosure principles. In view of certain difference between the ChiNext Board and the NEEQ in investor composition, review standards and regulatory requirements and to ensure the completeness of information disclosure and continuity of rules, the information disclosure requirements on the listing of NEEQ-listed companies on the ChiNext Board have been kept generally consistent with those on IPO on the ChiNext Board. The guidelines on the report and application documents for moving to the ChiNext board are based on the existing requirements on the content and format of the prospectus for IPO on the ChiNext Board and the requirements on the IPO application documents, with adaptive adjustment made.

Second, with investor demand as the orientation, SZSE has emphasized the principles of materiality and effectiveness of information disclosure. Based on practices of IPO information disclosure, SZSE has optimized partial information disclosure requirements in the guidelines on the report on the listing of NEEQ-listed companies on the ChiNext Board, further highlighting the principles of materiality, effectiveness and pertinence. SZSE has defined the specific applicable scope of the principle of materiality, reduced and optimized the overview section, and moved the paragraphs about intermediaries and their personnel information to “Attachments”. In the “Basic Information” section, disclosure of information about the company’s shareholders with a shareholding ratio of over 5% and that about other enterprises controlled by its de facto controller is no longer required. In addition, SZSE has deleted enumerative and lengthy disclosure of independent events, highlighted the disclosure of independent flaws and rectification results, and removed enumeration of specific accounting policies.

Third, SZSE has made full use of the achievements in the review and continuous regulation of the select tier, and leveraged regulatory synergy. Considering that companies in the select tier have been listed on the NEEQ for over a year, in the guidelines on the report on the listing of NEEQ-listed companies on the ChiNext Board, SZSE has properly reduced the content for disclosure that has already been disclosed to the public on the NEEQ market. For example, SZSE has simplified the requirements on disclosure of information on company history and compliance, the requirements on the application documents for listing, etc., to truly reduce the burdens of market entities. In the meantime, based on the characteristics of the listing of NEEQ-listed companies on the ChiNext Board, SZSE has added the requirement of disclosing the company’s standard operation information during its listing.

With the release of the supporting rules for the listing of NEEQ-listed companies on the ChiNext Board, SZSE has basically completed the preparations for the listing of NEEQ-listed companies in the select tier on the ChiNext Board. Next, SZSE will, under the leadership of CSRC and the work philosophy of being “open-minded, transparent, honest and impartial”, steadily advance the handling and review work concerning the listing of NEEQ-listed companies in the select tier on the ChiNext Board. By giving full play to the functions of the capital market as a hub, SZSE will facilitate dynamic connection among multi-tiered capital markets and better support the development of innovative enterprises and startups, thus further improving the capability of the capital market in serving the real economy.