On 18 August 2020, the Supreme People’s Court of the People’s Republic of China released the Opinions on Providing Judicial Safeguard to the Reform of the ChiNext Board and the Pilot Project of the Registration-based IPO System. On August 19, the Guangdong Higher People’s Court issued the Opinions on Implementing Judicial Safeguard to the Reform of the SZSE ChiNext Board and the Pilot Project of the Registration-based IPO System. Those documents, especially formulated for the reform of the SZSE ChiNext Board and the pilot project of the registration-based IPO system, have laid a solid rule-of-law foundation for SZSE to carry out stock issuance and listing review and self-disciplinary regulation.
Improvement of the judicial safeguard mechanism is an important part of the reform of the ChiNext Board and the pilot project of the registration-based IPO system. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the Supreme People’s Court and the Guangdong Higher People’s Court issued the opinions on judicial safeguard to implement the principles of relevant meetings of the Financial Stability and Development Committee under the State Council. It is held that the market-oriented, rule-of-law-based development direction should be followed, that the judicial functions should be leveraged, that the new Securities Law should be implemented and that “zero tolerance” should be shown in case of violation of laws and regulations in the capital market. The rights and obligations of all market participants are further specified to facilitate the formation of a market environment where all market participants fulfill their duties and protect their own legitimate rights and interests according to laws. The opinions are of great significance to guaranteeing the steady implementation of the reform of the ChiNext Board and the pilot project of the registration-based IPO system.
SZSE will conscientiously implement the opinions on judicial safeguard as issued by the Supreme People’s Court and the Guangdong Higher People’s Court, adhere to the principles of “building systems, no intervention, and zero tolerance”, follow the work requirements of “Four Respects” (respecting the market, rule of law, profession and risks) and “One Resultant Force” (seeking support from all sectors of society), continue to put stability in the first place and pursue progress while ensuring stability, and strive to be “open-minded, transparent, honest and strict”. SZSE will strengthen the concept of a registration-based IPO system with information disclosure at its core, improve basic regulations, strictly implement systems and rules, review stock issuance and listing on the ChiNext Board in a prudent manner, and crack down on violations of laws or regulations such as fraudulent stock issuance and false information disclosure. SZSE will help facilitate the implementation of the litigation system for securities dispute representatives, protect investors’ legitimate rights and interests, enhance market participants’ sense of gain from the reform, and steadfastly safeguard an open and fair market order. To build a law-based, transparent, open, dynamic and resilient capital market, SZSE will also strengthen formation of innovation capital, and play an active role in promoting the transformation and upgrading of the real economy.
