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SZSE recently organized and held the sponsors’ forum. Centering on how to maintain the positioning of the ChiNext Board, improve the information disclosure quality of prospectuses, optimize the review process for issuance and listing on the ChiNext Board, ensure the quality of listed companies, etc., SZSE briefed the progress of relevant work, had in-depth communication with sponsors, and fully listened to their advice and suggestions. Personnels in charge of investment banking business from 17 sponsors attended the forum on the spot or via video link. They have given lots of constructive suggestions on how to incorporate the positioning of the ChiNext Board into review, further improve the ChiNext Board review quality and efficiency, and continue to promote the practice of seeking market participants’ opinions on review work.
Representatives attending the forum generally believed that since the reform of the ChiNext Board and the pilot project of the registration-based IPO system, SZSE has adhered to the positioning of the ChiNext Board and efficiently pushed for listing application acceptance and review work according to the “three principles” (honoring the basic connotation of the registration-based IPO system, learning from best international practices, and reflecting Chinese characteristics and the features of the development phase) of the registration-based IPO system reform. As a result, over 300 listed companies were added, and a fleet of high-tech enterprises with strong technological innovation capability and are highly recognized by the market, enterprises from strategic emerging industries as well as innovation-oriented startups with great growth potential got listed on the ChiNext Board. Market participants’ sense of gain increased significantly. The reform produced good effect on the whole, injecting new vitality into high-quality economic development.
During discussion, representatives attending the forum said that since the launch of the pilot project of the registration-based IPO system, the overall internal control capability and business quality of sponsors have improved through joint efforts, but there’s still certain gap in response to the new situations arising from the deepening of the registration-based IPO system reform and the actual needs in the development of the ChiNext Board. To address the gap in future, they suggested having a deeper understanding of the systemic feature of the registration-based IPO system reform, fulfilling the primary responsibility as the “first gatekeeper”, and focusing on four areas of work. First, to ensure sponsors recommend quality enterprises. Sponsors should firmly establish the “quality first” development philosophy, correctly understand the positioning of relevant segment, help enterprises consolidate their fundamental business, and recommend enterprises that comply with standard operation regulations and conform to the positioning of the ChiNext Board for listing and financing. Second, to ensure the performance of the duties of the three lines of defense in investment banking. We should give full play to the roles of the project team, quality control and internal audit of investment banking, do a good job in inspections and audits and strengthen internal quality control through independent, professional and solid working foundation, thus to intercept enterprises with problems in the application stage. Third, to continue to improve information disclosure quality. We should earnestly implement relevant requirements of the Guidelines on Improving Information Disclosure Quality of Prospectuses under the Registration-based IPO System, reduce information that is redundant, modularized and hard to understand, make the information disclosure of prospectuses more effective, targeted and readable, and improve the quality of replies to review inquiry. Fourth, to adhere to the bottom line of honest practice. We should perfect the honest practice internal management mechanism for issuers and intermediaries and strictly implement relevant regulations on honest practice in the securities industry to jointly build a clean and upright industry ecosystem.
Relevant official of SZSE said that SZSE will earnestly implement the decisions and plans of the CPC Central Committee and the State Council and take solid steps to develop the ChiNext Board to provide strong support to realize high-level technological innovation and innovation-led high-quality development. SZSE will sum up ChiNext Board positioning review experiences in practices, develop and improve the criteria of innovative, productive and creative enterprises, and conventional industries integrated with new technology, new industry, new business form, and new model on the ChiNext Board. SZSE will hold fast to the positioning of the ChiNext Board and adopt strict market access measures to improve the quality of listed companies from the source. Moreover, it will further strengthen review capability building, stress the pertinency and materiality of review inquiry, and continuously improve the quality and efficiency of review. It will carry out review related work with an open mind, further improve the communication channel with market entities, sum up, refine and make public review standards, and consolidate the achievements in the stock issuance and listing review on the ChiNext Board such as openness, transparency and clear expectations.
