.jpg)
In recent years, under the guidance of the China Securities Regulatory Commission (CSRC), the Shanghai Stock Exchange (SSE) has consistently pursued progress while maintaining stability to continuously deepen reforms in the capital market. On April 10, 2023, the comprehensive registration-based IPO system was successfully launched. Taking inspiration from the reform experience of the STAR Market, with a more market-oriented and convenient approach, the SSE further improved the trading system on the main board and enhanced trading regulation, receiving positive feedback from various market stakeholders. The statement of the meeting of the Political Bureau of the CPC Central Committee on July 24, 2023 included "revitalizing the capital market and boosting investor confidence". The SSE has thoroughly studied and implemented the spirit of the meeting of the Political Bureau of the CPC Central Committee and steadily implemented the work arrangements of the CSRC. Based on comprehensive research and market opinions, the SSE accelerated the introduction of a series of pragmatic measures to improve the trading system and optimize trading regulation, aiming to stimulate market activity, enhance trading convenience, and continuously raise market attractiveness.
Firstly, the SSE is exploring the possibility of allowing the order size of main board stocks, funds, and other securities to increment by a unit of one share (or unit). Currently, the order size for main board stocks, funds, and other securities on the SSE should be 100 shares (or units) or multiples thereof. It is envisioned to adjust this to a minimum order size of 100 shares (or units), with subsequent increments by one share (or unit). This adjustment may reduce the trading costs of high-priced stocks for investors, facilitate diversified investment, improve the efficiency of capital utilization for investors, reduce assset managers' difficulties in managing investments, and lower product tracking deviations. Additionally, it promotes market activity and liquidity in stocks, funds, and other market segments.
Secondly, the SSE is considering the introduction of an after-hour fixed-price trading mechanism for ETFs. After-hour fixed-price trading serves as an effective supplement to continuous trading during regular trading hours. It not only caters to investors' demand for transactions at a predetermined price beyond the auction matching period, but also helps mitigate the impact of large closing-price transactions for passive tracking purposes on prices during trading hours. Market institutions have widely expressed their hope for the introduction of the after-hour fixed-price trading mechanism for ETFs so as to further meet the demands of investors seeking to trade ETFs at the closing price.
Thirdly, the SSE is optimizing trading regulation. The SSE adheres to market-oriented and rule-based principles while striking a balance between ensuring smooth trading and curbing excessive speculation, with the aim of safeguarding the effective functioning of the market. English versions of trading regulation business rules have been published to constantly promote the disclosure of regulatory standards. Moreover, the SSE has strengthened the communication of regulatory rules to further clarify market expectations and enhance transparency in regulatory practices.
Moving forward, the SSE will thoroughly implement the requirement of "two combinations". It will draw on best global practices while adhering to national and market conditions and the practical situation, work solidly and carefully on optimizing the trading system and improving trading regulation. The SSE will expedite the refinement of business plans, revision of business rules, and promotion of technological advancements, and facilitate market participants in relevant testing and preparations. This will fast-track the rollout of measures that optimize the trading system and improve trading regulation, thereby fostering a vibrant market and better serving the construction of a modern capital market with Chinese characteristics.
