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Recently, Shenzhen Stock Exchange (“SZSE”) issued an amended version of the Charter of Shenzhen Stock Exchange (hereinafter referred to as the "Charter").
To fully honor the spirit of the 19th CPC National Congress, strengthen party leadership and improve relevant systems, conscientiously implement the newly amended Measures on Administration of Stock Exchanges, optimize corporate governance structure, and deliver front-line supervision obligations, SZSE draws on the experiences of management and operation to make further amendments to the Charter, which was reviewed and passed by 2018 SZSE General Assembly and has recently been approved by China Securities Regulatory Commission.
The Charter serves as a foundation and guidance for the smooth running of SZSE, and a critical vehicle for performing the front-line regulatory duty. The major amendments to the Charter could be summarized as follow. First, strengthening the party's leadership position. Party committee is further clarified to assume a central role of political leadership so as to ensure materialization of the Party and state’s policies. It is also specified that the party’s centralized and unified leadership over major matters shall be upheld, and major events shall be reviewed by the Party Committee before being submitted to the Board of Directors. Second, strengthening frontline oversight functions. The exchange’s scope of functions is expanded, with more front-line regulatory measures introduced. Members’ responsibility for management of clients’ transaction behaviors is strengthened and the exchange’s duty of risk control enhanced. Third, optimizing governance structure. The authority of the Board of Directors, General Manager and Board of Supervisors are further clarified; reporting of meeting resolutions by the Board of Directors and Board of Supervisors to the CSRC is specified. Fourth, improving relevant regulations on internal remedies. New market players may apply for hearings and review to safeguard their legitimate rights and interests.
Next, SZSE shall carefully implement the arrangements of the Party Central Committee and the State Council, focusing on the three major tasks of serving the real economy, preventing financial risks and deepening financial reform, uphold the principle of ruling the market and the exchange by law, guide major market players toward standard operation, and jointly ensure and promote the smooth and sound operation and development of the capital market
