.jpg)
To fully implement the new Securities Law, ensure the smooth reform of the ChiNext Board and stable pilot project of registration-based IPO system and assist in improving the quality of listed companies, SZSE released the revised editions of three rules, namely, the Implementation Rules on Self-disciplinary Regulation and Disciplinary Measures, the Rules on Hearing Procedure for Self-disciplinary Regulation and the Working Rules of the Appeal Review Committee on December 31. These rules further expanded the scope of hearing and review items, optimized the toolkit for self-disciplinary regulation, and facilitated improvement in rule-of-law-based, standard self-disciplinary regulation.
The revision mainly involved three areas. First, serving reform needs and making regulation more effective. Based on series rules on the ChiNext Board reform and registration-based IPO system, we added two disciplinary regulations including not accepting issuance or listing applications submitted by issuers, controlling shareholders, de facto controllers, etc., and three self-disciplinary regulation measures, to enforcing the constraints through obligations and relevant accountability mechanism of market entities such as issuers and controlling shareholders. Besides, we set forth hearing and appeal review procedures for disciplinary measures concerning not accepting applications, so as to give sufficient space for interested parties to defend themselves and ensure their legitimate rights and interests. Second, putting in place higher-level rules and ensuing to synergize rules. In light of the new Securities Law, we adjusted the scope of restricted transactions from “restricting transaction of securities accounts” to “restricting investor transaction”, and deleted relevant expressions in the rules that no longer fit the new Securities Law such as “suspended listing” and “CSRC-designated media”. Third, summing up experience and optimizing regulatory procedures. Based on the experience in regulatory work, in response to market appeals, we allowed hearings and appeal review meetings to be held in off-site forms, and made it more convenient for interested parties to seek internal remedies. We also loosened the restrictions on participants of hearings, stating that interested parties may participate in hearings with their agents.
Implementing self-disciplinary regulation measures and disciplinary measures is a vital way to for SZSE to fulfill self-disciplinary management responsibilities, while hearings and appeal review meetings are important internal remedy channels for market entities to defend themselves. As one of frontline regulators, by earnestly practicing the principles of “system building, non-intervention, and zero tolerance” and adhering to the working philosophy of “openness, transparency, integrity and impartiality”, we will further strengthen self-discipline and self-regulation, and continue to improve the execution of self-disciplinary regulations. In addition, we will continuously enhance whole-process regulation, clearly define the responsibilities of all market participants, and handle acts in violation of laws and regulations according to law, in a bid to improve the capabilities in governing SZSE and the market based on the rule of law and ensure stable deepening of the reform of the capital market.
