Since the steady implementation of the reform of the ChiNext Board and the pilot project of the registration-based IPO system, SZSE has constantly improved the working mechanism for the regulation of issuance and underwriting of new stocks. By monitoring, analyzing and identifying clues of abnormal quotes of new stocks regularly and adopting measures such as field inspection and regulatory reminders, SZSE has continuously strengthened the regulation of quotation. In the first half of the year, together with the Securities Association of China (“SAC”), SZSE conducted a special inspection at 11 offline investors. Regarding problems that were found during the inspection such as incomplete internal control regulations, insufficient pricing basis and failure to strictly implement the pricing and price changing decision-making procedures, SZSE adopted relevant regulatory measures, including suspending qualifications for one to three months, giving a warning letter, etc. In the same period, regarding other non-standard operations found in the daily regulation of offline investors such as failure to report price changes, SZSE sent out nine regulatory letters and held 19 reminder talks.
SZSE recently noticed some abnormal behaviors during quotation among few offline investors such as frequently changing prices during quotation, making drastically price changes and making highly consistent quotes. Therefore, SZSE conducted an inspection of nine relevant offline investors with the SAC again. The nine investors include six private fund managers, one fund company, one securities company, and one finance company. Next, SZSE will determine subsequent measures based on the inspection results.
It requires the standard operation, self-discipline and joint efforts of all market participants to advance the registration-based IPO system reform in a steady and orderly manner and build a sound ecosystem in the capital market. SZSE will continuously practice the principles of “system building, non-intervention, and zero tolerance” and follow the work arrangements of China Securities Regulatory Commission. We will continue to improve the system of rules for the issuance and pricing of new stocks and enhance market-based issuance and pricing of new stocks. We will strengthen regulatory cooperation, step up efforts in the inspection of implementation of rules, crack down on violations, and work with market participants to maintain a normal market order and sound market ecosystem.
