Recently, severe flooding has struck regions including the Beijing-Tianjin-Hebei region, Northeast China, and other affected areas (hereinafter referred to as the disaster-stricken areas). The Shanghai Stock Exchange (SSE) has taken immediate action by swiftly initiating an emergency donation mechanism through the SSE Foundation. Collaborating proactively with the local securities regulatory bureaus, the SSE has donated disaster relief materials to the affected populations, and, through coordinated public-interest efforts, actively participated in post-disaster reconstruction. In order to further implement the important instructions of General Secretary Xi Jinping regarding flood prevention and disaster relief, as well as the decisions and arrangements of the CPC Central Committee and the State Council, and in accordance with the arrangements made by the Party Committee of the China Securities Regulatory Commission (CSRC), the SSE has integrated the Project List of the Shanghai Stock Exchange to Do Practical Things for the Market in 2023 (hereinafter referred to as the Project List), released in March this year, and has introduced 15 practical measures to precisely upgrade support measures for the disaster-stricken areas and investors. These measures encompass diverse financing support and optimization of market services, aiming to support flood prevention, disaster relief and post-disaster reconstruction, so as to effectively safeguard the stable operation of the market.
I. Supporting the normal processing of stock issuance and listing review and underwriting business in disaster-stricken areas
1. In addition to supporting preliminary communication via video links and other online means for enterprises planning to apply for initial public offering (IPO), refinancing, and M&A and reconstruction on the SSE, the Exchange will provide support for individuals of issuers and intermediaries in disaster-stricken areas who are unable to sign documents uniformly due to the impact of the disaster. These individuals can submit project applications, inquiry replies and other related documents by using electronically scanned signature page documents. Enterprises that are unable to respond to review inquiries in a timely manner due to the impact of the disaster can apply for a suspension of the review based on their own circumstances.
2. Providing free "cloud listing" services to encourage issuers in disaster-stricken areas to schedule IPOs in a manner that suits their circumstances and optimize both online and offline roadshow methods. Encouraging issuers to conduct free online roadshows through the SSE Roadshow Center.
II. Supporting the bond businesses in disaster-stricken areas
3. Providing diversified bond financing services support for operating entities in disaster-stricken areas. The Exchange will support the issuance of "flood prevention and disaster relief special bonds" mainly used for disaster relief and reconstruction. It will also support the use of government bonds, corporate bonds, asset-backed securities, publicly-offered infrastructure REITs and other products for financing in disaster-stricken areas, with a flexible approach to handling deadlines.
4. Establishing a green channel for bond issuers in disaster-stricken areas, allowing for immediate filing and review to streamline the review process and enhance efficiency.
III. Ensuring the normal operation of information disclosure businesses for listed companies and bond issuers in disaster-stricken areas
5. To address the difficulties and issues faced by listed companies in disaster-stricken areas during information disclosure operations, the SSE has set up an all-weather consultation hotline for information disclosure operations (021-68601636).
6. For listed companies unable to submit information disclosure documents through the daily business management system using an EKey due to the impact of the disaster, submission via email or fax is allowed. For information disclosure documents that cannot be physically signed and sealed on time due to the disaster, electronic signatures or relevant explanations can be temporarily used as substitute.
7. Identifying the impact of the disaster on listed companies and bond issuers in a timely manner, formulating contingency plans for information disclosure, and assigning specialized personnel for service coordination to ensure that companies affected by the disaster can fulfill their information disclosure obligations smoothly.
8. During flood prevention and disaster relief periods, increasing support for listed companies in disaster-stricken areas in convening roadshow activities, such as performance meetings, by providing green channel services. For disaster-affected listed companies, online shareholder meetings can be established according to their actual situations and lawyers unable to attend in person due to the disaster can participate and witness shareholder meetings via video conferences or other methods.
9. Encouraging listed companies to fulfill their social responsibilities, and giving full consideration in the annual assessment of information disclosure to those actively supporting flood prevention and disaster relief.
IV. Reducing the costs for market entities
10. In addition to the comprehensive exemption of all fees for SSE-listed companies in 2023, including initial listing fees, annual listing fees, shareholder meeting online voting fees, and CA certificate usage fees, SSE provides the SSE Cloud Resource to listed companies in disaster-stricken areas as free emergency support to bolster their service capabilities for investors.
V. Highlighting consideration in regulation
11. Market entities affected by the disaster can apply for remote video hearings, extended hearing periods, and extension of deadlines for submitting evidence in disciplinary and review procedures. During the agreement-based transfer of shares of listed companies, market entities in disaster-stricken areas can first send the existing materials via email for the equity transfer and receive feedback for amendments, and then submit complete written materials once all electronic versions are confirmed.
12. Supporting members in disaster-stricken areas to take measures to ensure the smooth operation of the business. The Exchange will strengthen communication with members, understand the impact of the disaster on their client transaction management, and promptly assist in their resolution. It will also support affected members in conducting client transaction management and regulatory coordination online. If members are unable to respond to regulatory correspondence in a timely manner due to severe disaster impact, they can apply to the Exchange for an appropriate extension.
VI. Providing comprehensive market services to disaster-stricken areas and investors
13. Bolstering support for government departments in disaster-stricken areas by utilizing the SSE Xingqihang online platform to enhance access to investment and financing information for innovation and entrepreneurship enterprises to fully leverage the capital market.
14. Opening up channels for investors to express their needs. Investors in disaster-stricken areas can inquire about questions and express their needs via non-face-to-face methods, such as the Investor Service Hotline (400-8888-400), email (gzrx@sse.com.cn), WeChat official account, and the official website message. The SSE will patiently and attentively address investor needs, and timely follow up on the progress. The Exchange will strengthen online investor education services, actively carry out investor education through websites, Weibo, WeChat, and other internet channels, and meet the online learning needs of investors in disaster-stricken areas.
15. Giving full play to the important role of the SSE Foundation as a platform for performing social responsibilities, and increasing donation efforts to actively support flood prevention, disaster relief, and post-disaster reconstruction in disaster-stricken areas.
