Today, the Shanghai Stock Exchange (SSE) issued the Notice of the Shanghai Stock Exchange on Cancellation of the Second Batch of Materials for Handling Businesses, the No. 2 Business Guide of Shanghai Stock Exchange to Member Management - Essential Clauses for Risk Disclosure Statement, and the Guidelines of Shanghai Stock Exchange for Handling the Business of Contractual Transfer of Shares of Listed Companies and the supporting guide. The move marked SSE’s new progress in its continuous efforts for mechanism integration of business rules, simplification of materials for business handling, mechanism optimization of business handling, and reduction in the costs for the market entities.
Cancellation of 17 materials for simpler administration
In accordance with the reform requirements for “streamlining administration and decentralizing authority, integrating decentralization and regulation, and optimizing services”, the SSE has made constant efforts to sort out and improve the documentary requirements for business handling in batches on the basis of regularly publishing the lists of self-regulatory and market service matters. The 17 materials for the handling of business in 3 areas are canceled in the Notice of the Shanghai Stock Exchange on Cancellation of the Second Batch of Materials for Handling Businesses issued this time. First, as the provisions on the mandatory credit rating for public issuance of corporate bonds have been abolished in the current rules and regulations, the rating documents in the application documents for listing of corporate bonds have been canceled accordingly, and the issuers are no longer required to submit rating reports. Second, the reform requirements for “separating permits from the business license” are implemented, as online verification will be conducted if the materials for business handling such as the business license for corporate legal person and the information disclosure announcement texts can be verified online through official channels of the government and information disclosure websites, without the requirement for print submission. Third, in accordance with the registration system reform of “merging the three certificates in one”, the document type of organization code certificate has been canceled and will no longer be required as materials for business handling.
Integration of essential clauses of risk disclosure document for easier use by the market
In the continuous promotion of a “concise and user-friendly” system of rules, SSE issued the No. 2 Business Guide of Shanghai Stock Exchange to Member Management - Essential Clauses for Risk Disclosure Statements, with the aim to provide convenience for the market entities to better refer to and use the essential clauses of the risk disclosure statements for relevant business of the SSE, further clarify the requirements for securities and futures institutions to disclose risks to investors, and optimize the mechanism for signing the risk disclosure statement. The No.2 Business Guide focuses on improving user experience in four aspects. First, various texts are integrated. The texts of the 24 existing essential clauses of the risk disclosure statements are compiled and integrated, and presented as an “All-in-one Book” business guide, and the subsequent revisions and new additions to the essential clauses of the risk disclosure statements will be carried out in the way of updating the guide. Second, the layout is optimized. The texts of the essential clauses of the existing risk disclosure statements are presented in categories and serially numbered according to their respective types of products traded, so that the market entities can promptly find the texts of the essential clauses of the risk disclosure documents through the index attached to the guide. Third, the version management is improved. All the texts of the essential clauses of the risk disclosure statements compiled this time are marked with the release date. If the essential clauses of the existing business risk disclosure statements are revised later, the revision date and content will be marked to facilitate the identification by market entities. The newly formulated essential clauses of the risk disclosure statements will be included in the index for the corresponding variety and will be numbered serially. Fourth, the signing mechanism is optimized. In case of any modification to the text of the risk disclosure statement, the investors who have signed the original version of the risk disclosure statement will not have to sign the new version again, and the business institution shall fully inform the risk changes by means of short message servicing, telephone or trading system prompt and make a proper record. In addition, for qualified professional investors, if the business risks have been fully disclosed, the business institution can decide whether to require them to sign a risk disclosure statement based on the detailed classification and management conditions.
Updated list of materials for contractual transfers with better handling mechanism
Upon a summary and evaluation of the effectiveness of the “one-stop handling” and “checklist-based verification” business mechanisms that were launched last year, the SSE has revised the Guidelines of Shanghai Stock Exchange for Handling the Business of Contractual Transfer of Shares of Listed Companies and the supporting guide, aiming at a higher service level and better mechanism for handling the business of contractual transfer of shares of listed companies. The Guidelines improved the handling mechanism in the following four aspects. First, the handling circumstances are modified and adjusted according to law. In accordance with the Provisions on Prohibition from Access to the Securities Market, the contractual transfer where either party to the transfer is prohibited by the China Securities Regulatory Commission (CSRC) from trading securities in the securities exchange is included in the circumstances for rejection of acceptance; and according to the Opinions on Further Regulating People’s Courts’ Freezing of Pledged Stocks of Listed Companies, the contractual transfer of the judicially marked shares that have obtained approval documents is included in the circumstances for acceptance. Second, the materials for business handling are further streamlined. The materials such as the tender offer exemption, the business license for corporate legal person, the spouse consent letter, and the paper information disclosure documents, are no longer necessary for business handling. Instead, the online verification and the commitment of the parties are adopted. Third, the standards for business handling are further clarified. The market concerns are specified, such as the calculation method of the benchmark transfer price in the process of signing the supplementary agreement, the notarization requirements for the power of attorney for natural persons, and the determination of the actual control relationship between the transfer parties. In addition, according to the actual needs of market entities, the validity period of the confirmation document is extended to six months. Fourth, the texts of the rules are integrated and optimized. The two sets of business guides to the general contractual transfers and the default-disposal contractual transfers are merged into one, which is presented in the form of “All-in-one Book”; and the format of the confirmation form for contractual transfer is modified, with simpler content of application information to be filled and optimized formats to facilitate the utilization by the market entities.
In recent years, the SSE has taken the opportunity of improving the supporting rules of the new securities law, earnestly implemented the requirements of "streamline administration, delegate power, strengthen regulation and improve services", comprehensively analyzed the self-regulatory responsibilities and market service matters, systematically cleaned up business guidelines and regulatory questions and answers, publicized regulatory standards, and optimized the rules system, with the efforts persistently advanced as a fundamental task in the long run. Going forward, under the guidance of the CSRC, the SSE will continue to strengthen its ties with the market entities through business rules, respond to the reasonable needs of the market in a timely manner, and effectively enhance the investors’ sense of fulfillment in the market.
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