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It is a major decision and plan of the CPC Central Committee and the State Council to implement the registration-based IPO system across the board. Ensuring information disclosure quality, promoting review with an open mind and strengthening corruption risk control are important tasks of the registration-based IPO system reform and also the responsibilities shared by all sectors of society. SZSE has firmly put in place the reform plan. Centering on the goals of the reform, SZSE has carried out the “Three Transparents and Two Improvements” Campaign to ensure the effect of the reform. We are looking forward to working with all sectors of society to jointly build a transparent, honest and quality registration-based IPO system. To this end, we put forth the following suggestions to relevant market players.
I. To be a builder of a transparent registration-based IPO system
SZSE will continue to embrace new ideas with an open mind when advancing the reform, promote the “transparent review”, and make sure that the regular communication channels with market entities are open. Issuers and intermediaries may have a “preliminary discussion” with SZSE as needed regarding board positioning, understanding and application of rules, major difficult questions and issues with no precedent to go by before the application to make better preparations. After SZSE accepts the application, issuers and intermediaries may check the review process, review Q&As, review meetings held by the Listing Review Committee and the M&A Review Committee and other relevant information via public channels. After the first round of review inquiry is sent, issuers and intermediaries may communicate with the review department on problems in the inquiry and new issues that arise during the review.
We call on issuers and intermediaries to strictly observe the open and normative procedures and mechanisms and contribute to a transparent registration-based IPO system with us. The parties involved should fully understand the main rules and regulations on issuance and listing, review procedures and stages (relevant contents are available on SZSE’s website) before making an application. In the “transparent review” process, the parties should actively cooperate with SZSE according to procedures and requirements and should not ask for information about the review privately or contact any review personnel or members of the Listing Review Committee and the M&A Review Committee privately.
II. To be a practitioner of an honest registration-based IPO system
Creating a sound ecosystem that breeds honest practices is an important cornerstone for the across-the-board registration-based IPO system reform. SZSE will actively accept the comprehensive supervision of CSRC as well as the supervision of the Discipline Inspection and Supervision Office of CCDI and NCS at CSRC. We will keep refining the corruption risk control policy and mechanism, enhance internal and external two-way constraints and advance the registration-based IPO system reform always with rigorous policies, serious disciplines and strict execution.
We call on issuers and intermediaries to jointly promote the establishment of a “close” and “clean” relationship with us and be practitioner of an honest registration-based IPO system. The parties involved should establish and refine relevant policies and mechanisms on honest practices accordingly and actively support SZSE’ honest duty performance and should not seek help by the backdoor or tunneling. We hope that relevant parties would intensify supervision on SZSE’ issuance and listing review work. Relevant parties are encouraged to promptly report any disciplinary or style-of-work problems found in relevant personnel such as seeking or taking bribery, intentionally creating difficulties, passing the buck, etc. SZSE will investigate into and handle any of the problems found seriously.
III. To be a guardian of a quality registration-based IPO system
The registration-based IPO system reform is to serve the real economy and high-quality development, put forth effort to support the quality enterprises’ issuance and listing, and promote high-level circulation of science and technology, capital and industries. The reform is, in essence, to give the right of choice to the market instead of leaving it unchecked. SZSE has launched the campaign to improve both the review quality and efficiency. SZSE has firmly implemented the reform idea with information disclosure at its core and earnestly fulfilled our responsibility of ensuring information disclosure quality in a bid to guard the access to the capital market properly together with market entities.
We call on issuers and intermediaries to observe the rules and an honest code of conduct, ensure the authenticity, accuracy and completeness of information in disclosure and join us to be guardians of a quality registration-based IPO system. Issuers should improve corporate governance, standardize accounting basis, make adequate preparations in advance, and avoid making a hasty or problematic application. Intermediaries should fulfill responsibilities diligently, select projects prudently, and conduct inspections strictly. They should help issuers correctly understand issuance and listing requirements and board positioning, rectify major problems before the application, prepare the prospectus with high quality, and substantially play their role as “gatekeepers” of the capital market
