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To put in place the requirement of deepening reforms to streamline administration and delegate power, improve regulation and upgrade services, and ensure effective connection to new higher-level laws, SZSE released and implemented the revised version of the Guidelines of Shenzhen Stock Exchange for Handling the Business of Share Transfer by Agreement of Listed Companies (hereinafter referred to as the Guidelines) and its supporting guide, another effort to “reduce burdens and improve efficiency” after the service was optimized in July 2020. The Guidelines is to implement the latest provisions laid down in two higher-level laws and the requirements of promoting the electronic handling mode across the board and cancelling three application materials. It aims to make the transfer by agreement service more convenient and more standardized.
Promoting the electronic system across the board to make better use of data and save the time of onsite handling. To further make the service more convenient, at the end of 2020, SZSE steadily carried out the pilot project of handling the transfer by agreement electronically phase by phase on the basis of original service modes like onsite handling and mailing. By transforming the whole process from submission of materials, providing feedback and fee payment into the electronic mode, SZSE has made the handling progress available for real-time check, and applicants can complete the whole process without even going to a designated counter even once. Currently, the electronic transfer by agreement service has been further improved. Defining it in the Guidelines and specifying the procedures in detail in the supporting guide is to promote the electronic system across the board, thus changing the service mode to make better use of data so as to reduce applicants’ legwork. In the meantime, to effectively prevent the risks of the electronic service, SZSE has required applicants to sign a letter of commitment stating that their electronic and paper documents are consistent and mail all the materials for record.
Continuously simplifying application materials to improve market participants’ sense of gain and satisfaction. The Guidelines has followed the principle of deepening the reform of “separating operating permits and business licenses”. It states that regarding permits and licenses that can be subject to online verification via public governmental channels such as business licenses, in principle, applicants are no longer required to submit such permits or licenses. And accordingly, SZSE has cancelled the requirement of submitting the three materials of corporate business license, certificate of legal representative and announcement of transfer by agreement. Instead, SZSE requires applicants to fill out relevant information, which will be verified by SZSE via a public website. By doing so, we has further reduced market entities’ burdens.
Optimizing application conditions and ensuring new higher-level laws are effectively put in place. The Guidelines has incorporated CSRC’s newly revised version of Provisions on Denying Access to the Securities Market. It has made it clear that in the event that either the transferor or transferee is denied access to trading securities in the stock exchanges by CSRC or its agency, SZSE will not handle the transfer by agreement, except for those who meet exemption conditions. The Guidelines has implemented the Opinions on Further Regulating the Freezing of Listed Companies’ Pledged Stocks by People’s Courts issued by the Supreme People’s Court, the Supreme People’s Procuratorate, the Ministry of Public Security and CSRC, adding that when it is allowed by a people’s court, stocks labeled by judicial organs may be disposed of by transfer by agreement, which can improve the procedure for disposal of pledged stocks and defuse stock pledge risk.
High-quality development is the theme and pillar of the reform and development of the capital market. Deepening reforms to streamline administration and delegate power, improve regulation, and upgrade services is an important way and inevitable requirement of the capital market to stick to the people-centered principle, improve working efficiency and service level, and realize high-quality development. Next, SZSE will continue to follow the leadership of CSRC, adhere to the working philosophy of being open-minded, transparent, honest and impartial, and uphold the concept of “putting market above everything else and being service-oriented”. Following the market- and law-based direction, we will steadily advance the implementation of policies and measures aimed to improve regulation and optimize services. Meanwhile, we will actively respond to market concerns and continuously improve market functions to enhance market participants’ sense of gain.
