Under the guidance of the relevant departments of the China Securities Regulatory Commission (CSRC), the Shanghai Stock Exchange (SSE) formulates and issues today the Guidance No. 3 on Application of Self-regulatory Rules for Listed Companies on STAR Market - Continuous Disclosure of Technology and Innovation Attributes and Related Issues (hereinafter referred to as the Guidance No. 3). The Guidance No. 3 aims to clarify the matters and requirements for information disclosure of technology and innovation attributes after the listing of companies on the STAR Market, urge the companies to adhere to the position of technology and innovation and promote the companies' high-quality development.
The formulation of the Guidance No. 3 is an important measure for implementing General Secretary Xi Jinping's requirement that "to establish the technology and innovation board and pilot the registration-based IPO system, we should adhere to the position of technology and innovation, improve the quality of listed companies, support and encourage the listing of technology enterprises with strong expertise, emphasize information disclosure, reasonably manage expectations, and strengthen regulation”. Since the establishment of the STAR Market, the SSE has always attached great importance to the technology and innovation attributes of the listed companies on the STAR Market. In addition to formulating and revising the supporting business rules for the Guidelines for the Evaluation of Technology and Innovation Attributes (for Trial Implementation) for the initial public offering on the STAR Market, and requiring the companies to comply with the relevant provisions on technology and innovation attributes, the SSE has paid great attention to matters related to technology and innovation attributes in the process of continuous regulation. Focusing on information disclosure, the SSE urges that the listed companies on the STAR Market should adhere to the position of technology and innovation, and has built a regulatory system on technology and innovation attributes that covers the whole process of issuance and listing.
In terms of content, the Guidance No. 3 has the following features. Firstly, it comprehensively stipulates the continuous information disclosure items and requirements related to the technology and innovation attributes of listed companies on the STAR Market. More specifically, it urges the companies to invest the raised funds in the field of technology and innovation, and timely disclose the use of the raised funds and the progress and changes of the invested projects. In addition, it urges the companies to maintain R&D investment, ensure the orderly advancement of R&D projects, and maintain the advanced nature of core technologies. Meanwhile, it requires that the companies should fully explain the reasons and effects if there are significant changes in the amount of R&D investment and the proportion of R&D investment to revenue. It urges that the companies maintain the stability of the research team to improve the R&D ability and level, regularly disclose the changes of the R&D team, and continuously evaluate and identify the core technical personnel according to the actual situation.
Secondly, it respects the development pattern of listed companies on the STAR Market, fully considers the different development stages, R&D cycles and industry characteristics of enterprises, and in line with the basic logic of continuous regulation, it does not make mandatory requirements on the indicators of technology and innovation attributes, but focuses on the major changes in technology and innovation attributes including the relevant indicators. On one hand, when relevant indicators change normally due to the improvement of main business and periodic changes in R&D, it guides the companies to fully inform the market of the real situation. On the other hand, if there are significant risks or uncertainties in R&D progress and product commercialization, it urges the companies to disclose the risks in a timely manner.
Thirdly, it implements the requirements of building a concise and friendly system of rules by reducing the cost of information disclosure for market entities, and clarifies the arrangements for exemption and voluntary disclosure. In recent years, under the guidance of the CSRC, the SSE has conducted regulation on listed companies by focusing on building a system of rules on continuous regulation with listing rules at the center, complemented by guidance on application and business guidelines. The Guidance No. 3 implements the construction arrangement for the system of rules, integrates and elaborates on the disclosure requirements for matters related to technology and innovation attributes without adding to the companies' disclosure cost, and facilitates the understanding and application by market entities. Meanwhile, the Guidance No. 3 goes in line with the SSE STAR Market Listing Rules in terms of suspension of and exemption from disclosure, and allows the companies to suspend and be exempted from disclosure of information involving state secret or commercial secret, so as to meet the actual needs of the companies. It encourages the companies to voluntarily disclose R&D progress and other matters related to technology and innovation in accordance with laws and regulations, so as to improve the timeliness of information disclosure.
Since its launching in July 2019, the STAR Market has always adhered to its position, guiding and encouraging its listed companies to tackle key technologies and transform scientific research achievements. In 2020, the total investment amount in the research and development of listed companies on the STAR Market reached RMB38.4 billion, a year-on-year increase of 23%. This meant an average of 12% of operating revenue, with a year-on-year increase of one percent. The scientific research teams pooled more than 75,000 people, with an average of more than 280 people in each company, accounting for nearly 30%. A total of 16,300 new patents were authorized, including 4,500 invention patents. A number of important R&D and industrialization achievements have been reached, such as the formal mass production of the first 6 inch commercial SiC wafer production line of China Resources Microelectronics Limited and the authorization for emergency use at home and abroad of the recombinant new coronavirus vaccine jointly developed by CanSino Biologics Inc. and the Academy of Military Medical Sciences.
Next, the SSE will urge the listed companies on the STAR Market not to forget their original aspiration, continue to guide the listed companies on the STAR Market to put energy and resources primarily in their main business and technology and innovation, and help them make progress in achieving technological breakthrough and self-reliance.
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